Capitol expresses intent to be eligible for SRP bid

CEBU - The Province of Cebu sent a letter to the Joint Venture Selection Committee for the South Road Properties (SRP) expressing its intent to apply for eligibility to offer a deal for a portion of the 300-hectare project.

This move came barely five days prior to the opening of eligible bids. The letter was signed by Governor Gwendolyn Garcia and was submitted by a representative.

The letter was addressed to the Secretariat of the Joint Venture Selection Committee and was received Wednesday afternoon.

“We wish to inform you that the Cebu Provincial Government intends to apply for eligibility and to submit a comparative proposal for an unincorporated joint venture with the City of Cebu,” the Governor said in her letter.

The Province is interested particularly at the same lots that Filinvest Land Incorporation (FLI) is eyeing in an unsolicited proposal for a 20-year unincorporated joint venture with the City of Cebu.

In FLI’s proposal they will provide infrastructure facilities, buildings and other amenities in a central business district type development involving the construction of a minimum of 875,000 square meters building space over a 50.6 hectares area.

The deadline for the submission of eligibility requirements is set on December 22.

The opening and announcing of eligible bids will be done the day after.

Cebu City Administrator Francisco Fernandez, who also heads the JV Selection Committee, said they welcome any entity to submit their competitive challenge to FLI’s proposal.

FLI is proposing to pay the city an initial P1.5 billion payable in three years as well as payment of 10 percent gross revenues of built up units or a pre-determined minimum guaranteed return.

   Meanwhile, Asian Development Bank (ADB) representatives and city officials have agreed on the so-called “master plan” requirement.

In yesterday’s meeting with the steering committee, Fernandez said both parties ironed out things particularly on the issue of a “master plan.”

“We just clarified a misunderstanding on whether a master plan is needed or not, eventually ADB agreed that there will be no master plan but they need certain assumptions,” Fernandez said.

The assumptions needed by ADB may be called a framework plan or a strategized plan.

He said the master plan that was drafted 20 years ago may no longer be applicable at this time. “We don’t want to follow a stringent plan but a plan that is flexible according to demand,” Fernandez said.

If they follow the old master plan, companies such as Big Foot and FLI will not be allowed to invest at SRP, as it was intended only for manufacturing purposes.

Through a flexible plan, the city has decided to allow mixed land use at the SRP.

He said the assumptions will be based on the initial agreements with Japan International Cooperation Agency (JICA), which provided the loan for the SRP.

ADB is making plans for possible funding of certain utilities at the SRP.

By February next year, ADB will once again have its second round of workshops, this time for the implementation of the Priority Infrastructure and Investment Plan (PIIP).

JICA on the other hand submitted a proposed plan of the SRP according to what the city had presented.

The proposed plan will be presented by JICA Manila to JICA Tokyo for updates on how the project is going. — Ferliza Contratista/NLQ   (THE FREEMAN)