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)