South Road Properties (SRP) - Articles: 2009

Tom: Nothing shady about South Road Properties deal

(The Freeman) Updated August 11, 2009 12:00 AM

CEBU, Philippines - Cebu City Mayor Tomas Osmeña said he is always prepared to explain to the public all about the financial transactions entered into by the city regarding the construction and the sale of lots at the South Road Properties, formerly the South Reclamation Project.

According to the mayor all the documents about the SRP are still intact, including the financial records that are being kept by the city treasurer’s office whose personnel are very active in the payment of the loan to Japan.
It was city south district Rep. Antonio Cuenco who asked the mayor to render a full accounting of all transactions about the SRP.
Osmeña has encouraged the City Hall reporters to obtain copies of the documents saying there is nothing confidential about it.
The 295-hectare SRP was funded from a P3-billion loan in Japan that is payable within 25 years, but because of the peso devaluation the amount went up to more than P6 billion.
However, the mayor said he is not worried of the escalating amount of the city loan because while the city has a huge debt from Japan, the lots —once completely sold— will also make the city the richest local government unit of the country.
Although Osmeña refused to reveal any information of the possible investors who want to buy the 28-hectare lots at the SRP which is located in barangay Mambaling some of his subordinates said some investors really wish to purchase the lots.
One of the possible investors is planning to build a giant mall at SRP, much bigger to the present SM City Hall in North Reclamation Area.
Osmeña said a mall will trigger the increase of the amount of the nearby lots.
At present, the rates of the lots at the SRP that was already approved by the Commission on Audit is P15,000 per square meters for those in the beachfront, P10,000 per square-meter for those located beside the main roads and P8,000 for those in the interior portions.
The Filinvest Land Inc. has entered a joint venture agreement with the city for a 40-hectare lot, 10 hectares of the property has been purchased at P1.5 billion. — Rene U. Borromeo/BRP (THE FREEMAN)

Filinvest Land pre-qualifies to bid for CCP asset development (South Road Properties)

By Zinnia B. Dela Peña (The Philippine Star) Updated August 09, 2009 12:00 AM

MANILA, Philippines - Filinvest Land Inc. (FLI), the property development firm owned by the Gotianun family, has pre-qualified to participate in the bidding for the Cultural Center of the Philippines’ (CCP) asset development program.
In a disclosure to the Philippine Stock Exchange, FLI vice president and corporate information officer Apollo Escarez said the program involves the “redevelopment of CCP’s 62-hectare property into a center for business and economic activity with arts and culture as a focal point.”

The CCP was created in 1966 through Executive Order 30 with the purpose of promoting and preserving Filipino arts and culture.
Last February, the Court of Appeals prohibited the Pasay City government and Republic Real Estate Corp. from selling lots within the CCP complex after the government allegedly failed to pay reclamation costs.
CCP president Nestor O. Jardin said the CCP complex business and master plan was completed in November 2003 after the Supreme Court ruled that the CCP is the owner of the land in 2000.
Aside from the CCP, FLI was also tapped by the Cebu City government as its partner for the development of a 50.6-hectare lot at the South Road Properties.
Its joint venture proposal includes the purchase of a 13-hectare lot for about P2 billion and the development of 35-hectare lot across the prime property into a mixed-use commercial project which will have recreational facilities, residential condominium buildings and IT buildings.
FLI has set aside P5.3 billion for its capital expenditures this year or an increase of 29 percent from the previous year’s P4.1 billion. The money will be used to develop five to six mid-rise buildings, two BPO buildings, the first phase of the P25 billion township on a reclaimed land in Cebu City, and its first high-rise residential project called The Linear.
These projects will be funded using internally-generated cash and bank borrowings. The company has available bank lines of P3 billion.
The company is launching 29 new projects and phases this year, estimated to generate around P7.4 billion in sales across all market segments.
FLI plans to launch more phases in its ongoing mid-rise projects in Ortigas Extension and Marcos Highway in Pasig City, as well as in Davao and Cebu. It will also launch a similar project in Sta. Mesa, Manila.
For its socialized housing projects, the company is readying new projects within Ciudad de Calamba as well as new phases in existing projects in Batangas, Cavite, Tarlac and Pampanga.

Osmeña says cancer center at South Road Properties goes beyond politics

(The Freeman) Updated August 04, 2009 12:00 AM

CEBU, Philippines - Mayor Tomas Osmeña welcomes opposition leader and businessman Jonathan Guardo’s support to his plan to have a cancer center at the South Road Properties (SRP). here

Osmeña, in an interview during the turn over of 22 buses to the city’s northern barangays, said the proposed project “such as this goes beyond politics.”
“The MD Anderson is a project that goes beyond politics, but whether he endorsed it or not, I know what’s good for us,” Osmeña said.
Guardo earlier said that cancer has been a growing menace, causing the death of important people, including his own father.
This is the reason why Osmeña deserves all the support in making possible the setting up of MD Anderson Cancer Center at the SRP, he added.
He said he is sure that there are hospitals capable of dealing with cancer but Cebu needs world class expertise.
MD Anderson, Guardo said, has treated the mayor’s urinary bladder cancer and there will be a huge demand for that kind of treatment.
“Sure, I know. That’s what I’m saying. Anyone that has an experience with cancer can actually relate and will feel the need. I mean, one would want to get the best treatment,” Osmeña said in response to Guardo’s statement.
The mayor denied insinuations that only those who have money can avail of the treatment at the proposed cancer center at the SRP, saying there are a lot of programs that can be availed even if there is little or no cash at all.
“MD Anderson has programs that do not require money like cancer prevention, early detection, life lengthening and all those stuffs you know,” Osmeña said. In this manner, he said Cebuanos will no longer rely on bogus medicines that have superficial or fake claims.
The Cebuanos will also rely on MD Anderson standard of practicing medicine and not to stand with the bad culture among Filipino doctors who are not afraid of medical malpractice.
“Here doctors get offended when you get a second opinion; they diagnose dengue for tonsillitis, what? In there, doctors consult each other,” Osmeña said.
Aside from the treatment that can be availed by Cebuanos, the MD Anderson will also open a venue for medical tourism since people as far as the Middle East will come to Cebu City.
Osmeña recently met with the Department of Health (DOH) to discuss plans and legalities of the project.
The building is planned to be built by Filinvest Land Inc. in the 50.6-hectare area that is part of the joint venture agreement it has signed with the city government.
Business tycoon Manuel Pangilinan is also being considered to invest in the project in terms of hospital supplies and equipment. — Ferliza C. Contratista/WAB (THE FREEMAN)

Osmeña meets with DOH on cancer center project (South Road Properties)

(The Freeman) Updated July 27, 2009 12:00 AM

CEBU, Philippines - Mayor Tomas Osmeña has met with the staff of Department of Health Secretary Francisco Duque in Manila last week to discuss issues surrounding the planned branching out of the MD Anderson Cancer Center at the South Road Properties.

Osmeña said among the major issues discussed was the possibility of bringing foreign doctors to practice in the Philippines but how to go out about the plan is something that he would prefer to keep under wraps for now.
“The discussion came out fairly long and we talked about certain legal issues to be threshed out. I don’t like to discuss my strategy, there are people who don’t like what I’m doing…I might be saying things to their advantage…but I am pushing through with this,” the mayor said.
He said opposition to the project may come from both the national and local scene because of the so-called “crab mentality”.
Osmeña earlier said that having MD Anderson at SRP has the Middle East, Australia and the whole Asia as a market since it is nearer than their hospital in Houston.
The hospital in Texas earns around $1,000 a day for the stay alone, exclusive of the chemotherapy and other treatment fees. He said there was also a day in which the center earned $6.5 million for chemotherapy.
The mayor said he would prefer to build the center within the 50.6 hectare area of the development project of Filinvest Land, Inc. considering that the patients will have to rent apartments and condominiums.
The city earlier presented a proposal to business mogul Manuel Pangilinan for a possible investment at the cancer center. Pangilinan is the president of SMART and Philippine Long Distance Company, heads Metro Pacific Investment Corporation, and owns leading hospitals such as Makati Medical Center.
Osmeña was treated of his cancer of the urinary bladder at the MD Anderson Cancer Center in the University of Texas in Houston.
After nine months in the United States, he returned home last May after he was declared cancer free. — Ferliza C. Contratista/JMO (THE FREEMAN)

City's BRT to be patterned after Bogota's (South Road Properties)

(The Freeman) Updated July 15, 2009 12:00 AM

CEBU, Philippines - Now that he has seen the real deal, Mayor Tomas Osmeña said Cebu City will have a localized version of Bogota’s Bus Rapid Transit System.
Osmeña, in an interview at the VIP Lounge of the Mactan-Cebu International Airport yesterday, said his three-day trip to Colombia was very successful.Tomas:

“It was very nice, Bogota’s BRT is more sophisticated and modern than in Curitiba (Brazil), there are variations,” Osmeña said.
Osmeña spent three days in Colombia upon the invitation of former Bogota mayor Enrique Peñalosa, prior to his checkup at the MD Anderson Cancer Center in Houston, Texas.
He observed Bogota’s TransMilenio and then Pereira City’s Megabus BRT. Pereira City is as big as Cebu City.
“Ours will be localized, we will have some adjustments here,” Osmeña said.
The World Bank had already expressed willingness to fund the entire project. It initially released $235,000 under the Private Public Infrastructure Advisory Facility for an initial study which is set to start next month.
The BRT will cut through the heart of the South Road Properties and include Lapu-Lapu City, Talisay City and Mandaue City.
But only Mandaue City had signified interest to join the said project by issuing a resolution choosing the BRT as their public transportation mode.
Talisay City is supporting the thrust of Cebu City 1st District Rep. Eduardo Gullas which is for a Light Rail Transit similar to Manila.
A BRT is like a train station but buses ply the route instead of trains. – Ferliza C. Contratista/BRP (THE FREEMAN)

SM Prime beefs up presence in Cebu (South Road Properties)

By Zinnia B. Dela Peña (The Philippine Star) Updated July 07, 2009 12:00 AM

MANILA, Philippines – SM Prime Holdings Inc., the country’s largest shopping mall operator, is beefing up its presence in Cebu with plans to acquire three properties to take advantage of the city’s booming tourism industry.

In a disclosure to the Philippine Stock Exchange (PSE), SM Prime said the group is in talks with several parties for the purchase of new properties in Cebu and expects to conclude negotiations with one of them in the third quarter this year.
SM Prime is hoping to put in place its second mall in Cebu by 2011.
One of the properties the company is eyeing is located within the 295-hectare South Road Properties (SRP), which is envisioned to become the single biggest growth driver in Cebu.
The SRP is registered as a special economic zone and was designed for mixed land use that can accommodate light manufacturing, commercial, tourism, information technology and other service enterprises.
Cebu is the Philippines’ main domestic shipping port, and is home to more than 80 percent of the country’s domestic shipping companies. It also holds the second largest international flights in the Philippine Islands, and is a significant center of commerce, trade, and industry in the Visayas and Mindanao regions.
In May, SM Prime opened a mall in Naga City, its first in the Bicol region and 34th nationwide.
Naga City is considered as the nerve center of the Bicol region due to its proximity to large business establishments, universities, hotels, and regional government offices. It is also a transportation hub with the Naga Transport Exchange servicing almost all of the region’s inter-municipality transportation.
For the rest of the year, SM Prime is slated to open SM City Rosario in Cavite, SM City Pamplona in Las Piñas as well as the expansion phase of SM City Rosales in Pangasinan. By year end, the company’s branch network is expected to reach 36 with an estimated total gross floor area of 4.9 million square meters.
SM Prime is also looking at building a mall in Tarlac, San Pablo, Laguna, Calamba; and Commonwealth.
SM Prime has earmarked P12 billion in capital expenditures this year, P6.5 billion of which will be used to expand its operations domestically while the balance of P5.5 billion will go to its expansion in China.
Three new malls in China – Chonggqing, Suzhou, and Zibo – are targeted for opening between 2010 and 2012.
This will add to its three existing malls – SM Xiamen, Jinjiang, and Chengdu.
Suzhou, with a gross floor area of 73,000 sq.m., is under construction and is expected to open early 2010.
While Zibo and Chongqing, which has the biggest population in China) are scheduled to open in 2011 and 2012.

SM Prime Holdings eyes three more malls in Cebu (South Road Properties)

By Rhia de Pablo (The Freeman) Updated July 06, 2009 12:00 AM

CEBU, Philippines - SM Prime Holdings Inc., the conglomerate that owns and manages SM shopping malls in the country is currently negotiating with three properties here in Cebu for possible sites of three new malls.

“We are still in the middle of negotiations but we will come out with some good news towards the end of the third quarter because we should be closing some deals by then,” said SM Prime Holdings president Hans T. Sy in an interview.
However, Sy stressed that they could not assure that these three properties will all be clinched but he hopes that they can get all three.
He also said that the three new properties will hopefully include the South Road Properties (SRP) site.
After SM Prime Holdings close the deals for the three new sites in Cebu this third quarter, they are targeting to construct the malls simultaneously within 18 to 30 months so that it will be ready for operation by 2011.
Sy said that there are certain formulas that they are looking for in acquiring a new site for their mall operations and traditionally, the size requirement is around four to five hectares because the size that is lower than that becomes a super center, a smaller version of existing SM malls.
The three sites that SM is negotiating with measures around 80,000 to 85,000 square meters with provisions to expand to 200, 000 square meters like SM City Cebu, said Sy.
“Cebu is ready for three new SM malls and we are looking at utilizing our new operation and expansion approach. We believe that there is enough market even during the crisis because people look at shopping malls now as substitute for public parks so we will continue to develop malls into a destination center where people can go and visit,” said Sy.
Just recently, SM acquired new sites in Davao and General Santos for new malls and nationwide, they are set to open a supercenter in Las Piñas this October and in Rosario, Cavite this November.
Currently, SM has 36 malls all over the country and abroad as three of which is in China.
Sy bared plans to put up a fourth SM mall in Suzhou, China and expand its existing Xiamen operations.
“China is our growth story for the next five years. We are up against big competitors in China so our strategy is to move in to second to third tier cities which are areas that have never heard of shopping centers,” said Sy.
Aside from their plans to open another SM mall in China, the company is also looking at opening four new malls in 2010 which will include Tarlac, Antipolo and Calamba.
“Right now our main focus is in the Philippines because we still see a lot of growth here although everybody knows SM already. We will continue to strengthen our organization and we constantly tell our people to focus on Cebu which is currently the best place to be in Visayas and Mindanao. We are bullish of Cebu and we definitely have to have a second SM site here,” said Sy.

FLI assures city condo project won't flood Kasambagan (South Road Properties)

(The Freeman) Updated June 26, 2009 12:00 AM

CEBU, Philippines – To assure barangay Kasambagan that no flooding will occur in the area, Filinvest Land Inc. will finance drainage and road repair for its One Oasis Mabolo Project, a condominium project between barangays Kasambagan and Mabolo.
FLI Vice President for Visayas and Mindanao Tristan Las Marias made the commitment to Mayor Tomas Osmeña yesterday.

Osmeña said the city is helping FLI carry out with their project “but it doesn’t mean we are abandoning the people of Kasambagan. I mean, fair is fair,” Osmeña said.
Councilor Augustus Pe yesterday said the technical group of FLI, as well as the city’s engineering staff and officials of barangay Kasambagan are now holding meetings to determine the necessities for drainage and road repair.
The Kasambagan barangay council recently denied FLI an endorsement for its application for an environmental compliance certificate for the One Oasis Mabolo project, saying the project is seen to cause flooding in at least six sitios in the barangay.
The project would also reportedly flood an existing subdivision because it will block the exit of rainwater coming from the Cebu Country Club.
FLI is the city’s first investor at the South Road Properties with a P25 billion project, which will be implemented through a Joint Venture Agreement. —Ferliza C. Contratista/JMO (THE FREEMAN)

Tomas invites Pangilinan to invest in cancer center (South Road Properties)

(The Freeman) Updated June 25, 2009 12:00 AM

CEBU, Philippines - Mayor Tomas Osmeña has met with PLDT and Smart Communications Chairman Manny Pangilinan to discuss the possibility for the business mogul to invest at an extension of the MD Anderson Cancer Center at the South Road Properties.
Osmeña said the meeting went “very well” but nothing was finalized, especially on how much Pangilinan would invest in the project. The city has proposed for the business mogul to provide the equipment and facilities needed by the cancer center.
Osmeña met with Pangilinan in Manila the other day. Pangilinan was ranked the 39th richest man in the Philippines last year with a net worth of US$ 39 million.
Osmeña said another meeting will be arranged with Pangilinan and officials of Filinvest Land Inc., which the city wants to provide the land and the center itself. Filinvest is the very first investor at the South Road Properties.
The mayor was also set to meet with Senator Loren Legarda, chairperson of the Senate Committee on Health, but later chose to do so after he returns from the United States.
He said he would also meet with officials from the Department of Health, Philippine Medical Association, and Philippine Regulatory Commission, among others.
“I’ll meet them when I get back. I anticipate some opposition from the locals in the name of nationalism because you know, the market of this hospital is not really the Philippines,” Osmeña said.
Osmeña said he will also make an initial presentation of the project to officials of MD Anderson Cancer Center and would invite the officials to Cebu City. It was at the center where Osmeña was treated for his cancer of the urinary bladder.
Osmeña said a branch of the cancer center in Cebu will be the “biggest opportunity of the Philippines as far as medical tourism is concerned” and the city will target countries that are possible markets for the center.
So far, a prince from Brunei and a large firm in India have reportedly expressed interest to invest in the project, he said.
Aside from providing a topnotch facility to countries far from the US, Osmeña said the MD Anderson Cancer Center would also be a venue to facilitate research and development, as well as the transfer of technology to the locales.
“You know, they can validate alternative medicine like mixing of kamunggay with, you know, a potion here, lotion there, kanang mga Arthro-Arthro ba. I’m serious because they are claiming to cure these kinds of diseases,” he said.
MD Anderson has reportedly invented 17 new cancer treatments in five years and is working on six more treatments. — Ferliza C. Contratista/JMO (THE FREEMAN)

Tommy lays out plans for South Road Properties cancer center

(The Freeman) Updated June 24, 2009 12:00 AM

CEBU, Philippines – Cebu City Mayor Tomas Osmeña went to Manila yesterday to lay out plans to have the MD Anderson Cancer Center open a branch at the South Road Properties.
The said plans, he said, will be presented to officials of MD Anderson, University of Texas, Houston, when he will undergo a checkup next week.
Osmeña said he met with “hospital king” Manny Pangilinan for
a possible joint undertaking to realize the MD Anderson plan at the SRP.
“The meeting went on very well. It was exploratory. As suggested they will meet with Filinvest for a possible joint effort at the SRP,” Osmeña said.
In earlier interviews he said the hospital will have to be built in the 50.6-hectare area of Filinvest Land Inc. who will also build the building.
Another player needed is someone who could supply and organize the hospital which is the expertise of Pangilinan.
If things go as planned, operations and manpower will be filled in by MD Anderson.
Osmeña said, MD Anderson can’t put up a branch outside Texas as it is state-owned and so it was necessary for him to organize the players jointly.
Osmeña had his treatment and surgery for urinary bladder cancer at the said center which is considered as the best cancer center in the world.
Having MD Anderson at SRP has the Middle East, Australia and the whole Asia as a market since it is nearer than their hospital in Houston.
“Desperate people, those who wanted to live and get cured will go to MD Anderson, there was even one who will fly in and fly out from Hong Kong to Houston for treatment,” he said.
The hospital earns around $1,000 a day for the stay alone, exclusive of the chemotherapy and other treatment fees.
He said there was also a day in which the center earned $6.5 million for chemotherapy.
It is also preferable to have the center within the 50.6 hectare area of the FLI project considering that the patients will have to rent apartments and condominiums.
The patient’s relatives and friends will also be accommodated by the units that will be built soon.
Pangilinan is the president of SMART and Philippine Long Distance Company is in a hospital-buying-and-investing spree in Visayas and Mindanao.
He heads Metro Pacific Investment Corporation and owns leading hospitals such as Makati Medical Center. – Ferliza C. Contratista/BRP (THE FREEMAN)

To protect the South Road Properties Tom O might run for congressman

By Ferliza C. Contratista (The Freeman) Updated June 23, 2009 12:00 AM

CEBU, Philippines – Is Cebu City Mayor Tomas Osmeña running for congressman in 2010? He said that he will in order to protect the South Road Properties (SRP).
The mayor said that it is important that they protect the city’s interest in the SRP and wants somebody from their family to seek the congressional seat of the South District now being held by Antonio Cuenco, who is in his third and last term.
Osmeña said that it would either be him, his wife Margot or his sister Ma. Victoria ‘Minnie,’ who will be running for congress.
Vice Mayor Michael Rama, who has been touted as a very good bet for the congressional seat in the south, has already been anointed by Osmeña as the mayoralty bet of the Bando Osmeña Pundok Kauswagan (BOPK).

The move to have an Osmeña run for congress is also meant to help stop opposition leader Jonathan Guardo, who ran and lost in 2007, but has relentlessly pursued his desire to reach out to the voters of the district.
“It’s either Minnie, Margot or me, I can’t afford just anyone to become congressman of South District, because the SRP is there,” Osmeña said.
While Minnie has already expressed intention to run for congress, Margot, the mayor’s wife, has repeatedly said that she is not running for public office. Despite that, she remains popular among the barangay captains not as congresswoman though, but as replacement of her husband at City Hall.
The mayor said that he would not force Rama to seek the congressional seat.
“If I will force Mike, it will appear that I will have my own agenda,” Osmeña said.
Majority of the barangay captains, he said, dislike Rama and have already come up with two manifestos.
The latest manifesto, which called for a Margot-Cong. Raul del Mar tandem, was delivered last week, a few days after Osmeña pleaded the barangay heads to give Rama a chance.
The manifesto was signed by 56 of the 80 barangay heads in Cebu City.
Osmeña, however, assured that the manifesto would not affect his stand of having Rama as BOPK standard bearer next year.
He said that the opposition has no candidates anyway.
“Again they are recycled losers, di ko mupusta sa bihag, Mike Rama won against Raymond Garcia by 150,000 votes, besides Mike now is getting better,” Osmeña said.
Guardo’s Comment
Guardo said that the mayor is just making the SRP as an excuse when the truth is, he doesn’t want to step down from power.
“Alibi ra na. He doesn’t want a Carillo (Gerardo) or an Abellanosa (Rodrigo) or a Rama to run for a big position. Gusto niya Osmeña tanan. It will be Margot for Mayor, Minnie for congress in north and Tomas in the south,” Guardo said.
On his spending to win over the residents, Guardo said, the mayor’s party, Bando Osmeña Pundok Kauswagan (BOPK) has also been giving P2000 to senior citizens, millions of pesos in road asphalting, while Carillo is staging discos and concerts.
All these he said are already preparation for 2010.
Another opposition leader, former Mayor Alvin Garcia said the mayor should now take things easy.
“I think he should enjoy the remaining years of his life like me. He deserves it. He should avoid stress and relax more. Besides from his background, he won’t make a good legislator, it would be unfair to the city,” Garcia said.
Rama Speaks Out
Rama denied that he is not being fair in serving the barangay captains.
This after barangay captains from the north alleged that he doesn’t have any accomplishment or project in their district.
“That is of course not true, I have records of my projects and my undertakings that would show, had benefited both districts, my projects are not directly given to them,” Rama said.
These include his traffic and decongesting programs; cultural and historical events such Pasko sa Sugbo, Pasko sa Carbon, Buhing Kalbaryo and most popularly his being chairman of the Sinulog Foundation Inc.
The Sinulog Foundation, he said, earned millions in income which will translate to barangay’s share as Internal Revenue Allotment (IRA) once it reaches the National Treasury.
He also listed programs on Coastal Clean up, the rehabilitation of the City Hall Legislative Building and the number of times he served as Acting Mayor.
“Nakalimot sila nga dili pa ko mayor, that’s why, make me your mayor, tagae ko og chance and dinha ninyo makita ang proyekto diretso ninyo,” Rama said
Contenders
Meanwhile Osmeña said he would be willing to take in barangay Luz captain Nida Cabrera and a social worker Alvin Dizon as candidates to replace the outgoing Councilors.
“These are strong contenders, I always believe in government based on participation, sukad na sukad nangita jud ko og agi sa mga NGOs,” Osmeña said.
The two were formally announced as candidates by the Bag-ong Katipunan Alang sa Katilingbanong Katarungan (Bag-ong Katipunan) movement last Saturday.
Outgoing councilors include Abellanosa, Carillo, Arsenio Pacaña, Sylvan Jack Jakosalem and Christopher Alix. —/NLQ (THE FREEMAN)

Filinvest to push "eco-city" project at South Road Properties amid debate

By Ehda M. Dagooc (The Freeman) Updated June 22, 2009 12:00 AM

CEBU, Philippines - Despite the unending controversies hounding the Cebu City developed South Road Properties (SRP), real estate giant Filinvest Land Inc. (FLI) is bent on pursuing its P25 billion project in the area.
FLI vice president for the Visayas and Mindanao Tristan Las Marias said the company intends to break grounds for the SRP project early next year.
By year-end, FLI targets to finish the master plan for the entire 40-hectare lot that is covered by its joint venture with the Cebu City government.
The multi-residential development, he said will give Cebu City another landmark that will have an international flavor, as well as attract the local investors.
Under the contract of the FLI-Cebu City joint venture, the development master plan for the property is to be approved by the City Council within 10 to 12 months after the contract signing last February.
He said Filinvest has commissioned the services of foreign consultants and international master planners for the development design.
“We want the development to have an international flavor to sell it not just locally but also internationally,” said Las Marias.
As of this point, FLI has not committed a name for the project yet, he said adding that as per the company’s commitment to the City Council, the development will be mainly multi-residential type with medium rise buildings, condominium units.
FLI is riding on the bandwagon of developing environment-friendly buildings or “eco-cities.”

He described the FLI “eco-city” as having more pedestrian roads, central parks, its own school, church, central terminal, among others.
It will be a self-sustaining residential project,” he said.
“The deal is a good way for Cebuanos to feel proud. This is going to be the next global city in the Philippines,” he said.
The Cebu City government stands to earn from the outright sale amounting to P1.546 billion for the first three years, and from its 10-percent share in the sale of built-up units in the 40-ha area, or a minimum guaranteed return, whichever is higher.
The properties covered by the joint venture will be developed in 20 years, at 10-ha for a maximum of five years.
Las Marias said that FLI is open to talk to other developers that have plans to invest at the SRP to accommodate offices and businesses. He added that this will result in an integrated land use and a complimentary product mix at SRP.
He too assured that FLI is determined to push through its multi-billion peso residential project at the SRP as he is confident the political issues raised against the company’s investment there “have become fewer.
The Gotianun-led Filinvest Development Corporation, is one of the largest developers in the Philippines, developed close to 2,000 hectares of land in the last four decades, shopping centers, it also engaged in different businesses like banking (East West Bank), and projects like shopping centers, central business districts, high-rise offices, and condominiums, recreational farms, leisure clubs, industrial estates and an information technology park.
Excluding the investments put in its leisure group in Seascapes, Filinvest Land has already spent P5 billion in real estate developments in Cebu in the last three years. Combined, the company has put up close to P10 billion in investments in the last few years.

CIPC drafts campaign to re-package Cebu (South Road Properties)

CEBU, Philippines - After it successfully promoted Cebu as an ICT (Information Communication Technology) hub, Cebu will adopt a re-packaging campaign to lump together investments and tourism in the province.
(The Freeman) Updated June 08, 2009 12:00 AM

Cebu Investments and Promotions Center (CIPC) will soon draft an effective and unique promotional campaign for Cebu to re-package Cebu City as retirement and medical tourism hub, that will entice foreigners not just to visit here, but also make some investments in properties, such as condominiums.
Joining the program already introduced by the Department of Tourism (DOT) called as the “Live Your Dream” campaign, CIPC managing director Joel Mari S. Yu said Cebu will have a re-packaging bid as interest now especially from the foreign market, is not only considering Cebu as an investment hub, but also a good site for “vacation homes.”

This idea came about, after the CIPC noticed a drastic slowdown of ICT related investments in Cebu in the last few months, because of the continuous financial difficulties in the United States.
“We are always tied to the United States. Although the BPO [Business Process Outsourcing] is here to stay, and not at all a fad, but we also have to do something bigger and maximize our potential as attractive site for ‘vacation homes’,” Yu said in an interview.
Yu said CIPC saw a reduction of investors’ inquiries especially for BPO investments in Cebu in the last few months.
“Before, we used to entertain inquiries of investors once a week, now it will average from one to twice a month,” Yu said.
CIPC still has to finalize this re-packaging plan, Yu said adding that what will be the hottest destination for offering in this campaign is the 300-hectare South Road Properties (SRP).
Despite the ongoing controversy over the government-developed property, Yu said “everybody knows this is a political show. And there’s nothing wrong with the Filinvest investment.”
Yu said Cebu has to come up with a bigger program in terms of promotion and taking advantage of a rich pool of investors looking for vacation homes outside their respective countries, could bring in more money to Cebu.
DOT’s Live Your Dream" campaign, on the other hand, is an investment-tourism strategy to lure foreigners, such as the active retirees to invest on "vacation homes" in the Philippines.
If the campaign could attract at least 1,000 foreign buyers, and each would buy at least US$100,000 worth of vacation homes, it could easily generate US$100 million revenue to the Philippine economy.
DOT secretary Joseph Ace Durano earlier said that this concept was developed following the high satisfaction rate of the Philippines, as a destination to foreign travelers. Record shows that Philippines generated 87 percent satisfaction rate among foreign tourists. — Ehda M. Dagooc

Move to bring cancer center to Cebu City faces obstacles South Road Properties

CEBU, Philippines – While a cancer center at the South Road Properties is seen to attract clients from other countries in Asia, Australia, and the Middle East, Mayor Tomas Osmeña said yesterday the city may not be able to give its final word to the MD Anderson Cancer Center by August.
The MD Anderson Cancer Center of the University of Texas in the United States has expressed intention to invest on a cancer center at the SRP but Osmeña says the same faces several obstacles, one of which is the fact that the institution is state-owned, thereby, not allowed to invest outside Texas.
“They are not even allowed to put up in California…how much more in the Philippines? So somebody else can invest for them,” Osmeña said.
(The Freeman) Updated June 05, 2009 12:00 AM

The MD Anderson Cancer Center is considered to be the best in the world.
Aside from this, Osmeña said all stakeholders must also be fully cooperative to the proposed project.
“It’s like Tiger Woods wanting to come here in the Philippines…and so I have to organize the tournament, get the players interested,” Osmeña said.
Osmeña said the city is eyeing several possible investors that may best provide the building and equipment, however, the management of the institution will solely be by MD Anderson.
“Desperate people, those who wanted to live and get cured will go to MD Anderson. There was even one who will fly in and fly out of Hongkong to Houston for treatment,” he said.
The cancer center earns around $1,000 a day for the bed alone, exclusive of the chemotherapy and other treatment fees.
There was even a time when the center earned $6.5 million for one day from chemotherapy.
“I think this is the assignment that the Sto. Niño gave me, I will let you live bring MD Anderson here,” the mayor said.
Should the project pushes through, Osmeña said it is preferable that the cancer center will be located within the 50.6-hectare area of the Filinvest Land Inc. project, considering that the patients will have to rent apartments and condominiums.
The patients, relatives and friends will also be accommodated by the units that will be built soon by Filinvest.
Meanwhile, Osmeña said the city is not interested to pursue with a Joint Venture Agreement with the Korean investor who wants to build a condominium hotel at the Kawit Island. The investor reportedly failed to show proof of its track record.
Aside from this, Osmeña said the Kawit Island is not for sale, something that the Korean investor would want to do.
The Korean investor and another American investor met with Osmeña over the weekend to express interest to engage in a project similar to that of Filinvest. But Osmeña said he does not want a “white elephant” at the SRP.
“I don’t want that. I don’t want the investors to compete and kill each other. They should be specialized so that they will earn,” Osmeña said. – Ferliza C. Contratista/JMO (THE FREEMAN)

SM Investments to build hotels near malls

By Rhia de Pablo (The Freeman) Updated June 05, 2009 12:00 AM

CEBU, Philippines – Looking at the huge potential of the tourism industry, SM Investments Corporation’s (SMIC) hotel and entertainment segment unveiled plans to roll out a mid-end hotel brand nationwide that will maximize their properties near its existing regional malls.
With an earmarked budget of P2 billion, SMIC plans to open 15 branches of Traveller’s Hotel nationwide, which will capitalize on the flourishing domestic and foreign tourism industry in the country, said SMIC executive vice president and chief financial officer Jose T. Sio in an interview. here

Sio said the planned 15 branches will be put up by the company in a span of 10 years and among the initial locations being considered include Cebu, Iloilo, Bacolod, Davao, Baguio, Naga and other major cities with existing SM Mall operations.
He said that the first branch of Traveller’s Hotel will be opened in Bacolod City near the SM mall. The project is currently under its design stage and construction is targeted to kick off anytime this year.
“We want to maximize the usage of our properties near our SM Malls. We saw the potential of putting up quality hotels near our malls so we can provide a synergy of services to our guests because they can get all their needs in one location,” said Sio.
He said that the Traveller’s hotel will be a mid-level boutique hotel that will specifically cater to the growing domestic tourism in the country.
Sio said that the hotel will have around 50 to 100 rooms and the average accommodation rate per night will cost around 50 US dollars or around P2, 000 to P2, 500.
Meanwhile, in Cebu, Sio said they are looking for available space that is adequate enough for the hotel project as they are already anticipating the operations of their P2.5 billion Radisson Hotel project near SM City Cebu that is targeted to open this December.
He said that they are also allocating around P400 million for the construction of a smaller version of the SM X convention center here in Cebu near the mall. Construction is targeted to start during the latter part of 2010 and will be completed by 2011.
Sio said that SMIC is planning to acquire more land at proper reasonable prices for their banks, malls, residential and hotel operations and planned expansions.
Meanwhile, SMIC president Harley Sy said that their plans of acquiring lots in the South Road Properties (SRP) here in Cebu for their mall expansions will depend on present situations. He, however refused to give out more details about these plans.
“We believe in Cebu’s local economy. Your tourism sector has done a very good job and we can even say that now it’s even safer to be here than in Manila. We continually look out for areas in Cebu where we can expand our business and provide more service to the local public,” he said.
He said that SMIC is taking advantage of the slowdown in the property sector that resulted from the present global economic crunch as they are currently acquiring more properties near their existing mall operations, and areas near transport hubs and schools for their future expansion projects.
“We came up with our own business model to take advantage of what is selling at the moment considering the global crisis,” said Sy.

City to put on hold another sale at South Road Properties

(The Freeman) Updated June 04, 2009 12:00 AM

CEBU, Philippines - Cebu City Mayor Tomas Osmeña yesterday said the selling of another lots at the South Road Properties (SRP) will have to wait.
Osmeña, who met with a probable locator of the SRP yesterday, said the selling of lots of the SRP will have to be put aside after another sale or two.
“We just want to let Filinvest project kick off,” Osmeña said in a text message.
Filinvest Land Inc. (FLI) entered into a joint venture agreement with the city government for the development of 50.6 hectare lot at SRP.
Osmeña said he doesn’t want businesses competing at the SRP and wanted the city to regulate the sale of other lots.
Yesterday, he did not report to the City Hall but has met with the Korean investors interested to develop the whole Kawit Island for hotel and condominium project.
“They want Kawit, I said not for sale,” Osmeña said.

He said the Korean investors also interested to invest in other areas of the SRP.
Osmeña earlier said the Korean investors may however enter into a joint venture with the city to develop Kawit.
Last Sunday, the mayor also met with American investor John Baldwin of Bridge Capital who is interested to put up projects at the SRP.
According to reports, Balwin showed the mayor actual plans for his SRP projects. Baldwin’s company developed a major tourism project in Cambodia.
Filinvest is set to begin its project in the next two months. Its investment is expected to reach P25 billion in 20 years. — Ferliza C. Contratista/LPM (THE FREEMAN)

Tom wants South Road Properties investors to follow design objectives

(The Freeman) Updated May 28, 2009 12:00 AM
Locators at the South Road Properties (SRP) cannot just do whatever they wish.
Cebu City Mayor Tomas Osmeña wants all locators at SRP to follow the city’s design objectives.
Osmeña, in a press conference yesterday, said there are certain considerations that all locators will have to bear in mind to be in consonance with what the city desires for the SRP.
The first large investor of the SRP, Filinvest Land Incorporated (FLI) is set to start construction of their housing and offices project in the next two months.
Osmeña said planners of each locator will have to make sure that their structures will be built considering the factor of an internal transport system.
“The SRPs where one will leave and not to have a need of a car,” he said.
He said the SRP will be user friendly and where one can move around without needing a car therefore traffic is not a problem.

He cited as a mini example, the system that is being used by Plantation Bay Resort in Mactan where one may take a shuttle in going to the beach, spa or gym.
Osmeña said he will make sure that in the SRP there is direct transportation to and from the airport.
“You’ll feel safe riding the shuttle system because SWAT cops are there and that they made sure that the bus arrives and leaves on time, we want to get out from the safety overkill, break out from the image that the country is suffering from Abu Sayyaf, we are safe here in Cebu,” Osmeña said.
Filinvest officials, headed by President Andrew Gotianun and Vice President for Visayas and Mindanao Tristan Las Marias, presented to Osmeña their project plan.
Osmeña said all plans will also have to be approved by City Hall considering that the city is part owner of the project.
Filinvest is pouring in a P25 billion for high end housing and office spaces. The total project cost is estimated to reach P80 billion in 20 years.
The transport system is still being studied by three agencies — World Bank, the Asian Development Bank (ADB) and the Department of Transportation and Communication (DOTC).
The studies are leaning towards the establishment of a Bus Rapid Transit System patterned after Bogota, Columbia. — Ferliza C. Contratista/NLQ (THE FREEMAN)

City, VECO sign MOA for power in South Road Properties

CEBU, Philippines - The Cebu City government and the Visayan Electric Company yesterday signed a memorandum of agreement for electricity in the 300-hectare South Road Properties.

The signatories were Mayor Tomas Osmeña on behalf of the city while VECO was represented by its president Dennis Garcia, the signing was witnessed by key officials of both parties.

Osmeña said that VECO will supply electricity to the entire facility as well as fill in the demands of the locators.

The city will collect an access fee of 20 centavos for every kilowatt hour and charge a collection not higher than the usual rate outside SRP.

The mayor said that VECO was chosen as the power provider of the 300-hectare facility because it falls under its franchise area.

VECO holds a legislative franchise to construct, operate and maintain a distribution system for the conveyance of electric power to the end users in the cities of Cebu, Mandaue, Talisay and Naga as well as the municipalities of Minglanilla, San Fernando, Consolacion and Liloan.

VECO will arrange for the design, engineering supply and construction of an electric power distribution system in the SRP.

The city will require each locator in the SRP to execute an agreement to purchase electricity from VECO at a rate to be authorized by the Energy Regulatory Commission.

For now the city cannot estimate the expected power demand in the SRP as more locators have yet to come in. So far, only Bigfoot Global Solutions Inc. and Filinvest Land Inc. are the locators.

Bigfoot started its project in the area in the middle of 2007 and has paid the P25 million for its 25-year lease payment for a two-hectare lot for its expansion studio.

Just recently, FLI and the city closed a P25-billion sale over a 50.6- hectare area for office and high-end residential spaces.

For water, a Joint Venture Selection Committee will already go over the proposal of Pilipinas Water Resource Inc. — Ferliza C. Contratista/BRP (THE FREEMAN)

Tomas wants public to scrutinize South Road Properties

CEBU, Philippines - Cebu City Mayor Tomas Osmeña wants the public to further scrutinize developments at the South Road Properties (SRP).

A day before returning to the United States to undergo operation in his gall bladder the mayor said he welcomes the public, specially the city residents, to be aware of the SRP project and other developments in the city.

“I want the people of Cebu to scrutinize. Sure, because number one, we have nothing to hide and two, this is your project,” Osmeña emphasized.

According to him, he would welcome all questions and will answer them one by one because the residents deserve to know more about the SRP.

He added that he doesn’t mind repeating answers and explanations over the joint venture contract the city recently signed with Filinvest Land Inc. for a P25 billion project.

“To check for graft and corruption, it’s whether we got the right price for it or not,” he said.

Filinvest, according to him, was worried since they had never been insulted so much in their entire existence when their aim was merely to help the city.

In effect, Osmeña wanted also to reiterate that he welcomes any legal move that would be undertaken by the Cebu provincial government should it see any irregularity with the contract.

“Go ahead, file a case in court, not a congressional inquiry. Since when did the legislation become a court? So that is plain harassment,” he said in reference to the plan of Governor Gwendolyn Garcia’s younger brother, Cebu third district Rep. Pablo John Garcia, to seek a congressional inquiry into the joint venture of the city and Filinvest.

Osmeña said he remains positive that the transactions of other locators wanting to invest in the SRP will be smooth.

The mayor also said that he is sure that the ordinance pending at the City Council that seeks to prohibit the development of lots in the city that are owned by the Capitol will be passed.

“The City Council is not a rubber stamp of the mayor. If the vice mayor was a rubber stamp of the mayor, then we would all be happy at this time. We would have no problem, but since he had proven he is not, then 5,000 families could not sleep well at night,” Osmeña said.

He said the councilors are now well briefed on the situation and trusts them to make a good decision. — Ferliza C. Contratista/WAB (THE FREEMAN)

Tomas, Veco sign power supply accord for South Road Properties

By Marian Z. Codilla, Reporter

A DAY before leaving for the United States, Cebu City Mayor Tomas Osmeña signed a memorandum of agreement with the Visayan Electric Co. (Veco) to distribute power in the South Road Properties (SRP).

The mayor is scheduled to board a 12:45 p.m Cathay Pacific flight direct to Los Angeles together with wife Margot and only son Miguel.

Osmena said he will return to Cebu City on the first week of May after his surgery for the removal of his urinary bladder.

Osmeña, who has stage 4 cancer, attended to his City Hall duties with a full schedule yesterday.

He showed no sign of fatigue and told some reporters it was all right to remove their hospital face masks because he was feeling okay.

Veco agreed to provide electric power to the SRP and charge the businesses in the area the same rate as customers in the rest of Metro Cebu.

The agreement also stated that Veco will pay the city an access fee of P0.20 per kilowatt hour to be charged to the businesses and reflected in their monthly statement of accounts.

Cebu City Administrator Francisco Fernandez said the SRP is considered part of Veco's franchise area so the no public bidding was needed.

Cebu City Hall, Veco sign deal on supply to South Road Properties power users

THE Cebu City Government and the Visayas Electric Company (Veco) yesterday signed a memorandum of agreement (MOA) for the utility firm to supply power to locators of the South Road Properties (SRP).

Mayor Tomas Osmeña said Veco will just charge the rate it collects throughout its franchise area while giving the city a P0.20 share per kilowatt hour.

Panagbenga 2009 blog

Osmeña, however, failed to mention that the MOA contained a provision where Veco can actually apply for an additional P0.20 as “access fee” from locators, which would be collected once approved by the “regulatory authority.”

It is the Energy Regulatory Commission (ERC) that approves all applications for rate adjustments and other charges by distribution utilities like Veco.

“The Access Fee shall appear as separate line item in the monthly statements accounts from the Distributor (Veco) to the Locators. Distributor shall exert reasonable efforts to obtain the approval from the relevant Regulatory Authority, when
applicable and necessary, for such application,” read Section 3.2, Article 3 (Rates and Billings) of the agreement.

And when open access and retail competition are implemented, Veco will continue collecting the access fee for the City, which “shall first cause each locator to execute an agreement for such continued charging and collection of the access fee.”

The same section also stated that if the “regulatory authority” orders Veco to stop collecting the access fee and return what was collected, the City Government should immediately return the total access fee it received.

Veco president Dennis Garcia and senior vice president and chief operating officer Jaime Jose Aboitiz signed the MOA for the utility company.

Section 3.1 also stated that Veco will charge its existing ERC-approved rates “in the meantime when electrical load of the
Ecozone (SRP) is not yet established.”

“When the electrical load of the Ecozone stabilizes, the Distributor shall apply with the Regulatory Authority, when applicable
and necessary, new rates specific for the Ecozone, and implement the same upon its approval,” it said.

The same portion of the agreement stipulates that an annual review of the electrical load of the SRP will be conducted to determine if there is a need for power rate adjustment, which the Veco should again apply for approval with the ERC.

The mayor said awarding Veco the right to provide power to SRP locators did not go through a bidding because they agreed that the property, though declared as an economic zone, is still covered by the utility company’s franchise.

Yesterday’s signing of the agreement signaled the availability of reliable power source for investors of the SRP, which became the topic of Osmeña and Gov. Gwendolyn Garcia’s renewed word war.

Yesterday, Osmeña again told the Capitol to just file a case if it saw something anomalous in the deal between the City and the Filinvest Land Inc. (FLI).

He said FLI officials felt insulted for being threatened with a congressional inquiry for entering into a joint venture agreement with the City.

“They have never felt being insulted like this. They asked what have they done on the SRP (to merit the criticism). I said nothing, just the vindictiveness of the governor. If they (Capitol officials) saw something illegal, why don’t they just file a case?” Osmeña told a press conference.

He, however, said enticing other investors to the SRP will not be as hard as that with FLI, which took him “four Sinulogs.”

The Sinulog is an annual event held every third Sunday of January in Cebu City.

Rep. Pablo John Garcia (Cebu, third district) has threatened to call a congressional inquiry on the FLI transaction, which involved the outright sale of 10 hectares and a joint venture with the City for 40 hectares.

Rep. Garcia said the deal is anomalous and disadvantageous to Cebuanos. Osmeña denied the accusation.

“I’m very proud of what I have done,” he said, reiterating that the Capitol is welcome to get a copy of the agreement and scrutinize it. (RHM)

Osmeña South Road Prpoerties pact can stand House scrutiny

By Marian Z. Codilla and Doris C. Bongcac, Reporters

LEGALLY defensible.

So said Cebu City Mayor Tomas Osmeña of plans for a congressional inquiry into the joint venture contract between the Cebu City government and Filinvest Land Inc. on 50 hectares of South Road Properties (SRP).

Osmeña said that while he was unhappy with the call by Rep. Pablo John Garcia for a congressional inquiry, the Capitol's accusations of irregularities were “pure harassment.”

“It's just pure harassment...(the province has) nothing else to do. They can make panglawgaw (a mockery of) the contract but it is very defensible and I am very proud of it,” Osmeña said.

He said he and other officials were ready to face the congressional inquiry.

Osmeña said that while he didn't sign the deal, he constantly negotiated with Filinvest for several years.

The deal between the city and the province is a mixture of outright sale and a joint venture (JV).

The Filinvest will enter into a joint venture with the city if it will allow them to purchase a 10.6-hectare portion in Pond F of the SRP.

Filinvest is also required to enter into a profit-sharing arrangement with the city on the 40-hectare property.

Garcia said he received text messages from several lawmakers who supported the inquiry, excluding his father Deputy Speaker Pablo Garcia of Cebu's second district.

“They (the lawmakers) said they are ready to sign the resolution and it encourages me because without asking them, they volunteered to help. But I need to get their signatures first,” Garcia said.

He said the inquiry will determine if the city complied with all the laws in its dealings with Filinvest.

“If there is something anomalous, the guilty party will not only be public officials who signed the deal but also private people who pushed for the deal. The inquiry is needed so that future investors will avoid entering into agreements that are anomalous,” Garcia said.

The inquiry, he said, would also guide future investors “on what can be done and what can't be done to avoid any criminal liability.”

Garcia said he will push for the inquiry on the Filinvest deal when Congress resumes session on April 13.

He said that he may later request the Senate to also look into the deal.

Garcia said he would not name the Cebuano legislators who sent him text messages, saying Osmeña also has as an ally in Congress Rep. Raul del Mar of Cebu City's north district.

Rep. Ramon “Red” Durano VI of Cebu's fifth district said he needs to familiarize himself with the issue first before making a decision.

Rep. Antonio Cuenco of Cebu City's south district said he also wanted to know the purpose behind the inquiry.

Rep. Garcia said a congressional inquiry was because the Capitol was not getting “straight answers” from Cebu City Hall.

He suspects that a city lawyer was not involved in the drafting of the JV agreement, the reason why it favors Filinvest's interests.

“Maybe if they are under oath they will tell us what really happened,” Garcia said.

He said plunder charges would be filed against certain persons if the results of the inquiry showed there were anomalies in the billion peso Filinvest deal.

Cebu Gov. Gwendolyn Garcia said she wanted to know the conditions behind Filinvest's acquisition of the 10.6 hectares.

She also wanted to know why the Capitol was not allowed to challenge Filinvest's unsolicited proposal despite being financially capable.

Cebu City Hall, UP seal partnership in South Road Properties

By Jully Venus Cuizon, Correspondent

A well-paying job in a call center and a chance to earn a master's degree in the same work site is a “strategy” that may pay off for Cebu City and the University of the Philippines.

If this attracts the “brightest workers” in the region, business is sure to follow.

Five hectares of reclaimed land in the South Road Properties (SRP) were donated to the state university, which will build a graduate school within the next three years.

As a condition, UP Visayas Cebu Campus will offer a master's degree in business administration (MBA) evening program and continuing education in the English language.

UP President Dr. Emerlinda R. Roman and Cebu City Mayor Tomas R. Osmena signed the Memorandum of Agreement (MOA) on the donation of 51,372 square meters of land yesterday.

“We are firmly establishing our right and competitiveness of Cebu in the future,” said Osmeña during the signing ceremony at the Social Hall of the Cebu City Legislative Building.

“I would like to see the day when Cebu will be producing 3,000 MBA graduates a year and all employees of call centers. These services will be offered to regional headquarters in Singapore, Hong Kong, Malaysia and other parts of Southeast Asia whose workers will come to Cebu for their master's degrees.”

Roman said UP would move quickly to build the school and will likely offer the MBA program this June, starting with classes in the existing UP Cebu campus in Lahug.

She said she and other UP officials were impressed with the mayor's dream “to make Cebu the first city of choice in the country and not just an alternative to Manila” and that UP has a role here in human resources development.

Before the signing, Mayor Osmeña sat down with the UP officials and suggested ways to partner with the private sector to get the facilities and programs up and running.

Present in the signing were Councilor Hilario Davide III and other city councilors, UPVCC Dean Enrique Avila, members of the Board of Regents, visiting UP officials from Diliman, businessman Manuel Go, SRP Marketing Director Joel Mari Yu.

Another condition of the deed of donation is that UP shall consider the project as its flagship Centennial project to offer programs in the fields of computational science product design and packaging, communications design, management, sciences, mathematics and the arts and humanities for the Visayas and ASEAN regions.

UP shall not convey in whole or in part the property to any third party. The deed of donation was approved by the City Council on March 4, 2009.

In his speech, Mayor Osmena said the partnership is a bold step for Cebu City and UP to make Cebu more “competitive” in a globalized economy and improve the workforce in Cebu and was an initiative being taken “without waiting for the central government” to act.

The mayor said he would like to see “educational courses geared to the lifestyle” of Business Process Outsourcing (BPO) workers. For example, an employee who gets off a graveyard shift could just go downstairs from his office to attend an MBA class because the schedule fits his reporting time.

He said BPOs abroad would favor having their employees get an affordable MBA degree in Cebu where workers have good people skills and a desire “for a better life.”

“The city government is not using SRP simply as a business of real estate. We want to do something extra with it and as I promised, we are looking for ways and means to help develop the economy of Cebu.”

Wenceslao: Killing South Road Properties' potentials

Bong O. Wenceslao

THE controversy over the Cebu City Government’s deal with Filinvest Land Inc. to develop a portion of the South Road Properties (SRP) has just gotten interesting, what with Capitol firing questions at will from the trenches. The biggest offensive would definitely be the House inquiry that Rep. Pablo John Garcia is preparing.

Let us see how a City Hall with “only” Acting Mayor Michael Rama (Mayor Tomas Osmeña is set to go back to the United States for surgery) at the helm would counter that assault. Will Reps. Raul del Mar and Antonio Cuenco man the ramparts in Osmeña’s defense by blocking the initiative at the House of Representatives?

I won’t dwell on who got the commission from the transaction. I would leave that to Bobby Nalzaro who has been harping on the issue in his columns and commentaries for days now. Commissions, even if they run to millions of pesos, are difficult to expose simply because those involved have the ability of cats.

The past days, there has been this odor emanating from somewhere in our kitchen. Which reminded me of my lola, Nanay Bunding (may her soul rest in peace), who used to punish our cat each time it leaves its excreta inside our house. Nay Bunding it was who told us city-bred kids about the special talent of cats: hiding the evidence of the crime.

Both the giver and the receiver of commissions (or in the terminology of the corrupt, SOP) are legally liable for the act, thus the tendency to clam up. In the end, what is left for the public to pick up from the crime scene are rumors and hearsay evidence, which is akin to the smell emanating from well-hidden cat excreta.

What caught my interest in Capitol’s tirade against the City Hall-Filinvest “joint venture” is the project’s development thrust, the same point I raised when the agreement was not yet signed. (The phrase joint venture is in quotation mark because there is logic in the contention that the agreement sounds more like a sale, with Filinvest given the sole authority to decide on what to do with the lots.)

Section 1 (b) of the agreement partly states that, “Filinvest and Cebu City shall jointly develop the Joint Development Properties into an integrated and well-planned clusters of medium rise residential buildings and retirement and congregate care complexes with adequate and necessary public infrastructure that includes roads, public utility networks and sewage system.”

After all the hassles the city and its residents have gone through in constructing this prime piece of property, including the diversion of money intended for basic services to the payment of the SRP loan, and we get only this: another subdivision area? No wonder a Japanese consultant chided the Filinvest project as having “low potentials for job generation.”

Why the haste in inking the deal with Filinvest when the city could have put the SRP to a better use (as an industrial or commercial site) had it waited for better deals later? Selling the SRP to the SM group, for example, would have been much better considering its expertise in developing sites for commerce. Turning a big chunk of the SRP into a subdivision is to kill the land’s potentials, making the area moribund.

Mayor Osmeña boasted often that the SRP is his baby. It now looks like the welfare of this baby is of lesser concern to the father than his own interest.

It’s harassment: Tom on threat of House inquiry on FLI deal (South Road Properties)

HARASSMENT. That’s how Mayor Tomas Osmeña described Rep. Pablo John Garcia’s vow to initiate a House inquiry into the Cebu City Government’s agreement with Filinvest Land Inc. (FLI) on the sale and development of South Road Properties (SRP) lots.

He, however, was unconcerned, saying the Capitol can keep and scrutinize its copy of the joint venture agreement with FLI.

“I’m not happy with harassment. But let me tell you that Congress is not a court. They want to use Congress as a court because maybe they can influence the congressmen, but Congress is not a court,” Osmeña said.

Several Cebuano lawmakers support the proposal to conduct a House inquiry on alleged anomalies in the joint venture, Garcia (Cebu Province, 3rd district) said.

“They said they’re ready to sign any resolution to that effect. It encourages me because without my asking them, they volunteered to help,” Garcia said in a press conference yesterday.

He said the House inquiry will become a venue for the public to check whether the multi-billion-peso deal conforms with the law. If the sale and joint venture agreement are proven to be irregular, City Hall officials might even be held liable for plunder, he added.

Gov. Gwendolyn Garcia, the congressman’s sister, has also asked Mayor Osmena to furnish the Provincial Government with a copy of the signed agreement.

Terms

Osmeña reiterated there are safeguards in the agreement, particularly on the need for FLI to construct buildings instead of merely selling lots.

The City stands to earn from the outright sale amounting to P1.546 billion for the first three years, and from its 10-percent share in the sale of built-up units in the 40-hectare area, or a minimum guaranteed return, whichever is higher.

The properties covered by the joint venture are supposed to be developed in 20 years, at 10 hectares for a maximum of five years.

Last March 6, FLI turned over to the City a P348-million down payment for the SRP lots it will develop.

“The Filinvest deal is a very unique joint venture that is designed to improve our economy,” Osmeña said, explaining that unlike other transactions, that with FLI prevents the company from merely selling lots.

“They cannot earn money selling land. So to make money, they have to build,” Osmeña said.

Bad mood

This way, he said, jobs are created since construction workers, security guards and maintenance personnel would be needed.

He also questioned the Capitol for criticizing the arrangement—10 hectares in outright sale and 40 hectares in joint venture with Filinvest—saying it was the offer the City received.

“Are we going to go kill a 50-hectare transaction because the Province is in a bad mood, that we have to separate them (10-hectare sale and joint venture) as if they (Capitol officials) own the property? We were interested in the joint venture because that joint venture is the one that will really start to create livelihood for the City of Cebu,” he said.

City Hall earlier declared the Province ineligible when it participated in the pre-qualification to challenge Filinvest’s offer.

Reached for comment, Rep. Nerissa Soon-Ruiz (Cebu Province, 6th district) promised to support Garcia’s proposal for a House inquiry “for transparency’s sake.”

Rep. Ramon Durano VI (Cebu Province, 5th district), however, said he will reserve his comment until he gets the details of the agreement.

Guide

Congressman Garcia said a House inquiry will guide future investors to steer clear of anomalous government deals or irregular provisions.

He criticized the mayor for saying that the Commission on Audit (COA) is studying the joint venture contract as part of the post-audit process before it approves the transaction.

“What is he talking about? If they don’t have the approval (of COA), how can they peg the price at P15,000 per square meter? COA needs to approve it,” the congressman said.

Whenever government disposes of property, the congressman explained, among the requirements is an assessment by state auditors of the property’s value.

“If the mayor says the COA does not approve it, then they have no business entering into this deal. That’s another strange revelation,” said the congressman. (RHM/GMD)

Garcias threaten to elevate South Road Properties pact to Congress inquiry

By Marian Z. Codilla and Doris C. Bongcac, Reporters

The joint venture agreement between the Cebu City government and Filinvest Land Inc. may undergo congressional scrutiny if City Hall refuses to give a copy to the Capitol.

Rep. Pablo John Garcia of Cebu's 3rd district said he will ask help from his father, Deputy Speaker Pablo Garcia and other allies to call for an inquiry into the agreement in aid of legislation when Congress resumes session on April 13.

Cebu Gov. Gwendolyn Garcia sent a letter to Cebu City Mayor Tomas Osmeña at his office about 2 p.m yesterday, asking for a copy of the signed agreement with Filinvest.

The agreement covers 50.6 hectares within the South Road Properties (SRP).

She said she wanted to know the grounds behind the Capitol's disqualification from challenging Filinvest's unsolicited proposal as well as the document's signatories.

Capitol consultant Rory John Sepulveda showed the media the provincial government's analysis of the joint venture agreement.

Governor Garcia questioned why the 10.6 hectare prime lot of SRP was disposed of without public bidding.

A copy of the draft JV agreement obtained by the governor's office mentioned that Filinvest will submit their development master plan to the city within one year from the agreement's effectivity.

Sepulveda said a portion of the draft agreement mentioned that “Filinvest can alter the master plan by issuing a 90-day notice to the city.

A 20-year period was also issued to Filinvest to develop infrastructure facilities in the SRP.

“Is an integrated and well-planned cluster of medium rise residential buildings and retirement and care complexes consistent with a Central Business District type of development?” Sepulveda asked.

Congressman Garcia said the planned review of the JV agreement should not be interpreted as retaliation for Osmeña's move to stop commercial development of province-owned lots.

“Would anybody else have cared?... You should thank the province for taking the cudgels in the interest of public good,” the governor said.

The mayor questioned why Governor Garcia made allegations about anomalies in the SRP agreement.

“Maybe I have too much chemicals in my brain but I don't know what she (Gov. Gwendolyn Garcia) is saying,” Osmeña said.

He said the Land Bank of the Philippines will not release the titles of the SRP property unless it receives the proceeds paid for by the city to them.

The LBP, he said, will issue the sold titles to the buyer.

The mayor said Vice Mayor Michael Rama signed the agreement since he was acting mayor at the time while Osmeña was undergoing chemotherapy sessions in the United States.

“I didn't work out the details. I didn't have the copy because I didn't signed it,” Osmeña said.

In the meantime, the Cebu City government will sign a memorandum of agreement with the University of the Philippines Visayas Cebu College for the use of the 5.1 hectare donated lot in the SRP at the mayor's office.

The lot is intended to house a graduate school for call center employees working at the SRP area.

Mayor Osmeña said under the setup, call center employees will earn a masteral degree while working through their schedule.

“They don’t have to go home because the classes will be timed to the work schedule,” he said.

Osmeña said the investor for the building will lease to the call centers and build the classrooms but will not pay the land.

“The city's tagline will be 'if you want an MBA, work at SRP,” Osmeña said.

He said Cebu will be able to produce several thousand of MBA graduates a year.

Osmeña said they will compete with Singapore and Hong Kong in building a regional headquarters for outsourcing businesses.

Amid the proposed new UP graduate building at SRP, UP alumni and students will hold a black T shirt rally to protest the closure of the UP High School to be discussed by the UP Board of Regents on March 26.

The Cebu City Council passed a resolution last year opposing the closure.

The UP Cebu High School is a laboratory and training ground for Education students in UP College.

But UP Cebu College said it is unable to subsidize the high school’s budget.
“The UP Administration should heed that clamor of the alumna's opposition and to continue the operation of the UP High School,” Councilor Hilario Davide III told .

School to make South Road Properties attractive to workers: Tom

AN EDUCATIONAL facility planned for the South Road Properties (SRP) will help attract locators to the Cebu City project, Mayor Tomas Osmeña said yesterday.

Cebu City will donate five hectares of SRP land to the University of the Philippines Visayas College-Cebu for putting up a facility that will offer information technology and masteral degree courses.

Osmeña is scheduled to sign the deed of donation today.

Master’s degree

Once the facility is set up at the SRP, call center agents of companies in the SRP will be given the opportunity to finish a masters degree at a convenient location and schedule.

“If the call center agent will finish work at three o’ clock in the morning, then classes can start at 3:15 a.m. downstairs. They don’t have to go home to change,” Osmeña said.

The mayor said this will attract “bright employees” who are qualified to work in call centers but refuse to do so because they see it as a “dead-end job.”

“This is designed not to attract the call center locators but designed to get the good people to work there because, where good people are willing to work, we know the call center operators will follow,” Osmena said.

Osmeña said the City aims to create an environment where call center employees will not want to work anywhere else except in the SRP.

The mayor sees Cebu City producing at least 3,000 holders of masters degrees yearly.

He said he feels very strongly for the project since it will appeal to “many bright young minds.”

“In this phenomenon of globalization we have to be the first to adjust, we have to be the first to react,” he said.

Last night, Osmena hosted a cocktail party at the Casino Espanol for the business process outsour-cing (BPO) industry. It was attended by at least 70 representatives from BPOs and Cebu business groups.

Listening

The mayor assured investors he is listening to their concerns, like the need to improve the educational system through better ties with the industry.

Osmeña said that in order to address concerns on the small number of graduates equipped with minimum requirements to work in a call center, BPO companies should identify and quantify the problem.

He said they should tell the city what to do. (DME)

Tom back with riches in mind (South Road Properties)

By Ferliza C. Contratista Andrene U. Borromeo Updated March 11, 2009 12:00 AM

CEBU, Philippines - “To create Cebu City’s economic future, through the SRP, is my priority.”

Thus, Cebu City Mayor Tomas Osmeña said, will be his priority during the welcome gathering late afternoon yesterday attended by close to 3,000 city hall employees, barangay officials and workers, who waited despite the rain.

Osmeña, dressed in a floral printed polo, appeared jolly and proud of his head he intentionally shaved due to excessive hair loss brought by seven rounds of chemotherapy treatment for his cancer of the urinary bladder.

He said his top priority for his two-week return to Cebu City is the finalization of developments at the 302-hectare South Road Properties (SRP), a project he initiated in 1994.

“There is this recession that is heating up not only in the US but in other parts of the world, it is my dream to make Cebu more and more self reliant, to be one of the richest, if not the richest city in the entire Philippines,” Osmeña said.

Osmeña said the first time he sat as Mayor in 1988, he sensed that Cebu City was short of cash and had to look for other sources of income, that was why, he worked and fought for the SRP.

“It will be very competitive in the next two to three years, but I can say we are well positioned despite dark clouds in the horizons, we cannot rely on America, we must not rely on the national government,” he said.

Osmeña said he wants Cebu to be able to adjust to a changing world and to develop a new kind of economic culture.

He said an economic milestone had occurred while he was away in Houston, Texas, with the signing of the P25 billion-joint venture contract with Filinvest Land Incorporated, the SRP’s first sale.

Osmeña said he will work on the policy direction of the SRP and make a follow through with other clients and locators.

The signing of the contract to him is not success in itself, but a beginning of more work especially with the looming recession.

Osmeña explained to the crowd that the city loaned P3 billion in 1998 for the SRP, but the amount had ballooned to P6 billion due to inflation.

Each square meter of land at the SRP, Osmeña said, now costs the city around P2,000.

With FLI buying the first 10 hectares at P1 billion or P15,000 for every square meter, the City earned for itself around P13,000 per square meter. That is why, Osmeña said, he wants the senior citizens to be the first to receive the fruits of the SRP sale.

“Para sad sila makatilaw, we are giving them a lump sum of P2,000 their birthday and Christmas gifts,” he said.

He said there were many who offered, but he rejected these as these were not favorable to the city.

“We have to help FLI make a lot of money because it would shoot up the value of the rest of the SRP,” he said.

He said he will be in Manila tomorrow to talk with officers of the Department of Environment and Natural Resources (DENR) to discuss the foreshore lease applications and to meet with the next in line locators.

Although he does not want to disclose the names of these entities, but there are reports negotiations are about to be finalized with Pueblo de Oro Consortium and SM Prime Holdings Incorporated.

Osmeña will be visited by no less than President Gloria Macapagal-Arroyo on the evening of the 13th for a personal visit.

He said he does not have any major issue to discuss with the President except that he will again make followups on the other necessities of the SRP.

Mayor’s Health

In his close to 30-minute speech, Osmeña also briefed the people about his health condition.

He said that once he will return to Houston, Texas on March 30, he will be subjected to a surgery at the MD Anderson Cancer Center where his doctors will finally remove the portion of his urinary bladder that has cancer.

The mayor had already undergone chemotherapy sessions just to kill the virus and to prevent the cancer from affecting the other parts of his body. “Mao na nga naupaw na ko, apan mobalik ra gihapon pagtubo ang akong buhok,” he said.

One up to 10 days every after a chemotherapy session, the patient will have weaker resistance due to the strong radiation, and usually the patients will only regain their strength after 10 days.

Osmeña admitted that he was about 60 per cent weaker yesterday although he is now slowly gaining back his strength.

There was no hand shaking between the mayor and his political supporters and friends after the speech, because he was quickly escorted by the security personnel to his office at the eighth floor of the City Hall annex building.

Despite several visitors, Osmeña granted the media an interview and he admitted that his doctors haven’t assured him that he is already out of risk.

Even after the doctors will be successful in removing the portion of his urinary bladder that has cancer, Osmeña said there is no assurance yet that he is already safe.

After the removal of the cancerous portion of Osmeña’s urinary bladder, the mayor will be subjected to a general check and evaluation of his condition.

When asked how he felt now compared to those months before he was subjected to chemotherapy, Osmeña said, “Mora lang g’yod og wala ko’y problema sa lawas.”

The mayor said his doctors did not prevent him from eating any kinds of food, although he was discouraged from taking acidic food and drinks. —/NLQ (THE FREEMAN)

Cebu mayor is back (South Road Properties)

CEBU CITY -- Mayor Tomas Osmeña arrived Tuesday morning, immediately took over from Acting Mayor Michael Rama, and spoke of preparing the local economy for “dark clouds on the horizon.”

In a press conference, Osmeña said resolving the manifesto of some barangay captains who pushed for a Raul del Mar-Tomas Osmeña tandem in the 2010 elections is not his priority. Rama will resume working as vice mayor for two weeks.

During these weeks, Osmeña said he would rather focus on meeting more potential investors for the South Road Properties (SRP) and help Filinvest Land Inc. earn more money.

“Whatever the problem is, it is the problem of the vice mayor. I’m not going to waste my time taking up this issue,” he told reporters immediately after addressing a crowd gathered at the Plaza Sugbu outside the Legislative Building.

He said he will not waste his energy trying to sort out the issues, as he wants to leave his mind fresh to attend to his priorities in the two weeks that he is back as mayor.

City Administrator Francisco Fernandez said the mayor has to be back in the United States on March 28 for surgery.

His priority, Osmeña said, is “to establish a policy direction for the SRP,” and to meet with other interested investors of the SRP, whom he declined to identify.

He is also meeting with FLI officials in a dinner Wednesday night to assure them that helping the company “earn a lot of money” is foremost on his mind. He wants FLI to start development right away.

The mayor explained that if the FLI earns because of its 10-hectare purchase and 40-hectare joint venture agreement with the city, the market value of the remaining 250 lots will soar because others would be enticed to pour money in the SRP.

“If Filinvest doesn’t make money, nobody will invest (in the SRP),” Osmeña said.

That is why, he said, he “will not waste (his) time” resolving the barangay chiefs’ manifesto, signed by 40 of the 80 captains.

He, however, told the crowd during the homecoming reception Tuesday afternoon that the election is near so “intrigues are flying about.”

Choices

Without reiterating his earlier endorsement of Rama and City Hall education consultant Joy Augustus Young, he assured the Cebuanos that “whatever (his) decision will be, it is for the interest of the city.”

In a separate interview, Young, a former city councilor and party-list congressman, said disagreements in choices among party members are what have kept the Bando Osmeña Pundok Kauswagan (BOPK) alive through the years.

He said Osmeña encourages them to speak out, and coming up with a manifesto is one such form of expression.

In his speech, Osmeña said the city will give the P1,000 Christmas cash gift and another P1,000 as birthday gift for each senior citizen this year from the P250-million surplus last year and the P348-million FLI down payment given last week for the SRP lots Filinvest will develop.

His speech dwelt much on the SRP, which he said will secure the economic future of the city.

He again explained that while the city incurred a P6-billion debt in constructing the SRP, the return on investment is big. For the P2,000 it spent to develop each square meter, for example, the sale price is P15,000, he said.

Osmeña said while there is a recession in the United States and many other countries, the city is “very well-positioned.”

“There are dark clouds on the horizon…. My objective is not only to earn money but to create a good economy,” he said. “We cannot depend on the National Government to save us. We will be part of the solution, not the problem.” (RHM/Sun.Star Cebu)

Filinvest to pay city P338 million on Thursday (South Road Properties)

Updated March 03, 2009 12:00 AM

CEBU, Philippines – Instead of today, Filinvest Land Inc. will hand over the P338 million first payment of its joint venture agreement for developing 50.6 hectares of the South Road Properties on Thursday.

Cebu City Hall still needs to finalize the technical description of the lots at the Department of Environment and Natural Resources.

One or two titles will be turned over to FLI, which will convey an initial two hectares as a result of the first payment.

The mother title of the 10-hectare outright purchase will then be taken from the Land Bank of the Philippines to be brought to the Registry of Deeds.

After that the remaining eight hectares will join the 40 hectares to be placed on an escrow account.

The 40 hectares are the first part of the contract that will be developed under a joint venture agreement.

Cebu City acting vice mayor Hilario Davide III yesterday met with city administrator Francisco Fernandez and acting mayor Michael Rama on whether a resolution is needed for the conveyance of the titles alongside the payment.

But Fernandez said a resolution is no longer needed since the contract signed last January was already all-encompassing.

“The moment the contract was signed, it was already a ‘catch all’, the mayor is already authorized to sign the Deed of Sale and others, which are consequences of the contract,” Fernandez said.

FLI is the SRP’s first sale since its reclamation was completed in 2005. In the next six months FLI will start to develop infrastructures.

The memorandum of agreement for the Visayan Electric Company for power distribution at the SRP is already set for discussion by the City Council tomorrow during its regular session.

The document for the creation of a Joint Venture Selection Committee to deal with the proposal of Pilipinas Water Resources Inc. for water supply is already with Rama awaiting his signature. — Ferliza C. Contratista/BRP (THE FREEMAN)

City richer by P348 million by Thursday (South Road Properties)

THE Cebu City government will be receiving P348 million by Thursday as the Filinvest Land Inc. is set to make its first payment of the land it bought at the South Road Properties (SRP).

With the payment, the Land Bank of the Philippines (LBP), the city's escrow agent, will release to the Filinvest duplicate copies of the certificates of title for the sold property.

The title that would be released to the Filinvest today would still be under the name of the city but a deed of absolute sale would be issued so that the Filinvest could start working on transferring the titles under its name.

The city was supposed to get the first payment today, however, the Department of Environment and Natural Resources (DENR) did not release the properties' technical description.

Cebu City Administrator Francisco Fernandez assured of getting the documents from the DENR before the 30 day period after the signing of the contract.

According to the Joint Venture contract between the city government and the Filinvest, the LBP has the obligation to release the duplicate copies of the land title to the possession and custody of the Filinvest upon the receipt of the payments. The city would also issue the deed of absolute sale of the property that was paid in installment basis.

The city entered into a Joint Venture contract with the Filinvest to develop a 50.6 hectare property of the SRP worth P25 billion.

The contract involves the development of the 40 hectare joint venture property as well as the purchase of the 10.6 hectare in Pond F.

“We have reviewed the documents and we are ready to sign,” said Fernandez, chairman of the Joint Venture Selection Committee (JVSC) for the Filinvest deal.

He said the City Council need not issue a resolution authorizing acting Cebu City Mayor Michael Rama to receive the first payment and to sign the documents pertaining to the sale and the transfer of title.

“A resolution is not needed as the contract was a catch all,” Fernandez said.

When the mayor was authorized by the City Council to sign the contract, it is already incumbent that the mayor will be signing all the documents which are the effect of the monumental signing of the JV contract last Feb. 2.

A representative of the Cebu City Hall was tasked to go to the LBP yesterday to have the title subdivided in the Registry of Deeds under an escrow arrangement.

REPORTER MARIAN Z. CODILLA

Filinvest to pay City for South Road Properties lots

CEBU City Hall will not get Filinvest Land Inc.’s (FLI) P338-million down payment today as earlier expected after city officials failed to secure a document from the Department of Environment and Natural Resources (DENR).

The document is a requirement in the joint venture contract to develop a 50.6-hectare area of the South Road Properties (SRP).

City Administrator Francisco Fernandez said last night that the scheduled signing of the deed of sale and the turnover of FLI’s first payment will not push through today and is postponed to March 5.

Fernandez said they do not consider it a delay because the schedule of payment is 30 days after the awarding and signing of the joint venture contract, which falls on March 5 and not March 3.

“We lack one document from the DENR. Something was left out, the technical description of the SRP lots, but that is not a
problem because the 30th day is not March 3 but March 5, so we will get it on Thursday. It’s no big deal,” he said.

Signing

Other than the technical description of the 10.6-hectare lot purchased by FLI and the 40-hectare joint development properties, the City has prepared the other documents and requirements specified in the contract before Acting Mayor Michael Rama and FLI officials sign the deed of sale.

Fernandez said the City is also prepared to turn over the title of a two-hectare portion to FLI.

The titles of the 10.6-hectare Pond F area of the SRP that are mortgaged with the Land Bank of the Philippines were delivered to the Registry of Deeds yesterday, so they could be split into several titles covering two hectares each.

This would allow the City to turn over one title to FLI so it could comply with one of the firm’s requirements before it starts the development project.

“The title for the two-hectare portion will still be in the name of the City Government but it will be released to FLI... As for the titles of the remaining 48 hectares, it will be returned to Land Bank and will be covered by an escrow agreement until all obligations in the joint venture agreement are settled,” Fernandez said. (LCR)

New team eyed to review South Road Properties water supply proposal

CEBU, Philippines – Cebu City acting Mayor Michael Rama is expected to sign this week the creation of a new Joint Venture Selection Committee which will go over the unsolicited proposal of Pilipinas Water Resources Inc. for the supply of water to the entire South Road Properties.

City administrator Francisco Fernandez said that the document creating the JVSC for PWRI is already on the table of Rama waiting for his signature.

Included in the creation of JVSC is its composition which according to Fernandez will still be composed of members of the former JVSC who dealt with the P25-billion proposal of Filinvest Land, Inc.

Fernandez was the chairman of the JVSC dealing with FLI. The latter will already render the down payment worth P338 million to the city government.

According to the unsolicited offer submitted by Antonio Tompar of PWRI, the city will be paid P10 for every cubic meter of water generated and distributed from the city’s existing desalination plant and P5 per cubic meter from any new desalination plant.

The rate of P1.50 for every cubic meter will be paid for non-potable, P5 per cubic meter for sewage treated water from existing facility and P2.50 from the new sewage facility.

Its key components include commissioning and operation of the city’s desalination plant, operation of the city’s sewage treatment plant, provision of necessary water structures, and connection and metering.

The existing desalination plant, which has not been operated commercially since its construction in 2000, has a capacity of about 650 cubic meters of potable water daily.

Its capacity is intended for the demand of the administration building and the first locator of Pond F.

The necessary water structures they assured to construct include a reservoir, additional waster supply, additional sewage treatment, additional potable water distribution system, additional non-potable water and fire hydrants.

The joint venture will cover 25 years and is renewable every 10 years.

Fernandez said that just like the FLI, after the composition of the JVSC will follow the crafting of the terms of reference followed by the publication of notice to interested parties to qualify and submit their respective competitive challenge.

Meanwhile, the Memorandum of Agreement for the electric supply to SRP by the Visayan Electric Company is already up for discussion in the City Council this Wednesday.

FLI has already scheduled first-phase developments on both the 10.6-hectare outright purchase and the 40 hectares under joint venture. — Ferliza C. Contratista/MEEV (THE FREEMAN)

Once he is back: Tomas to focus on sale of South Road Properties

CEBU, Philippines – Cebu City Mayor on-leave Tomas Osmeña, who is expected to be back more than a week from now for a brief vacation, said he does not have any major project to implement when he officially takes back the reins of the City Hall on March 10.

What the mayor plans to do during his three-week stay in Cebu City is to help in the negotiation with the prospective buyers for the sale of more lots at the South Road Properties (SRP).

The barangay officials in the city also want to hold their first quarterly assembly while Osmeña is here so he could attend and possibly give them instructions on how they could be of help in making the city economically healthy.

The mayor earlier announced that there are a lot of businessmen who want to invest at the 295-hectare facility, but the city is choosy on the kind of business that investors want to put up by making sure they could generate employment for Cebuanos.

Osmeña, who is still in Houston, Texas for the treatment of the cancer in his urinary bladder, said there is an investor who wished to build a huge hospital at the SRP, and said the hospital company is accredited with the US-based insurance companies.

With that, Osmeña expects that many of the retirees from the United States may decide to stay in Cebu City because they would not find difficulty anymore if they need medical care.

According to him, the Cebu-based hospitals are accredited with any of the US-based insurance companies where many US-Filipino Americans are insured.

After his seventh chemotherapy session, Osmeña is required to rest for two weeks before he will undergo a complete physical check-up and then surgical operation will follow to finally remove the part of his urinary bladder that is afflicted with cancer.

The mayor has asked permission from his attending doctors to allow him to return to Cebu City during his two-week rest. — Rene U. Borromeo/WAB (THE FREEMAN)

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