CEBU, Philippines - Amid the controversy over the promotion and land sales of the 300-hectare Cebu City government managed South Road Properties (SRP), the Cebu Investment Promotions Center (CIPC) clarified that it will continue to negotiate and market the property.
In a statement released by CIPC yesterday, managing director Joel Mari S. Yu said that his office has nothing to do with the “political” squabbles over SRP, and that the fact remains that SRP has huge potential to attract investors.
Yu said CIPC played a primary role in the negotiations and actions that resulted in the entry of Filinvest, SM, Bigfoot and UP into the SRP. It also successfully negotiated with the infra providers including power, water and telecom companies for operations at the SRP.
Today, there is an issue on whether the City should continue selling property now or hold all sales until sometime in the future when market values will increase.
“Mayor Mike Rama wants to sell now. His contention is that the City can benefit from the cash proceeds of property sales that can immediately be used to further fund the City’s development needs,” Yu said in the statement.
On the other hand, Congressman Tommy Osmena’s contention, which is supported by a majority of the City Council, is that the City should hold all property sales at the SRP until sometime in the future when values are optimized.
Finally, the fact that for sales of property owned by LGU’s to be realized, the Mayor must obtain Council Resolution authorizing him to sell, Yu said.
“The decision as to whether to sell SRP property now, or in the future, is not ours to make,” he stressed.
He said CIPC is only the marketing agent for the SRP, but the City government owns it, and only they can make the decision. However, it is also true that a decision to sell by the City government must be supported by both the Executive and the Legislative.
“While Mayor Rama’s contention is correct, the contention championed by Congressman Osmeña and a majority of the Council, is also correct. None of them is wrong but a decision is needed as to whose contention should be adopted,” Yu added.
CIPC is a non-stock, non-profit foundation registered with the Securities and Exchange Commission (SEC) since 1994. Its main function is to promote Cebu as a destination for appropriate Foreign Direct Investments (FDI).
CIPC’s work has resulted in the fact that today there are over 500 foreign director investors in Cebu in the areas of manufacturing, service industries, and tourism.
“This success is the primary reason why CIPC is supported financially by LGU’s in Cebu, primarily Cebu City, and other several private sector corporations,” said Yu.
In 2004, the City government of Cebu appointed CIPC as the marketing arm for the SRP as an additional assignment.
“In the meantime, CIPC can continue negotiating with prospective buyers, even as it continues to do so. But the issue has become public and prospective buyers are aware that sales can only be concluded after final resolution of the matter between the Executive and the Legislative,” Yu concluded. —(FREEMAN)