Capitol's bid for piece of SRP remains alive

Cebu - Acting Cebu City Mayor Michael Rama instructed the Joint Venture Selection Committee (JVSC) for the South Road Properties to review the resolution disqualifying Cebu Province from challenging a proposed project.

Rama told the JVSC to go over the resolution first to make sure they did not miss anything.

The resolution and cover letter was to formally inform the province of its failure to qualify to challenge the proposal for a 50.6-hectare development project at the SRP.

Capitol appealed that the JVSC reconsider an earlier decision to disqualify it as challenger for the bid of Filinvest Land Inc. to develop a portion of the SRP.

The appeal also got a thumbs down and the signature of Rama on the resolution would have made the decision final.

“I was thinking all the while that it was my calling, I was about to do what I am supposed to do, but it is their call,” Rama said.

He however said he could not comment any further as to the specifics on the area of the JVSC resolution that he wants reviewed.

Rama refused also to give a stand on whether he will let the Province bid or not, only after JVSC had done its part.

JVSC Chairman and Cebu City Administrator Francisco Fernandez, when asked about the issue, refused to comment.

Fernandez assured last week, seven days after JVSC denied the appeal of the Capitol, that he will make sure that Rama will sign the letter immediately after the Sinulog celebration.

Fernandez wants the proposal of FLI finalized since each day of delay can cost the city millions of pesos in interest.

City Mayor Tomas Osmeña, who is currently on leave for cancer treatment in Houston, Texas, earlier warned that Rama and JVSC are criminally liable for their actions if they would jeopardize the development of the SRP.

Osmeña in a teleconference with reporters during Sinulog day said Rama, JVSC and the city are following a set of guidelines in going into joint venture deals, which are patterned after provisions of the National Economic and Development Authority (NEDA).

“There is a specified time frame and they are liable should they violate their own rules,” Osmeña said.

He is even studying an option of filing a case of economic sabotage against any entity, including the Province for causing delay of the development at SRP.

“There is already malice on the part of the Province when Sepulveda (Capitol Consultant on Information) said they might as well invest in the SRP when the City will not let them develop Ciudad,” Osmeña said.

Cebu 3rd Distict Representative Pablo John Garcia, brother of Governor Gwendolyn Garcia, mentioned seeking redress from Court to pursue their bid in the SRP.

“It think it is the right thing for Vice Mayor Rama to do at least to avoid litigation. The committee should review its decision,” Congressman Garcia said when he learned of the development.

Cebu Province was declared ineligible for not meeting with the three basic pre qualification requirements.

Legally, the Province according to JVSC has no jurisdiction for being a public instead of a private entity.

Technically, JVSC said, the Province has no project of similar nature or a real estate project of at least 32 hectares which is already completed.

Finally, the Province failed to support its claim of financial capability for having a venture of the same nature which has an investment of more than the initial P25 billion investment of FLI.

FLI in its proposal, committed to compensate the City in a period over 20 years a minimum of P1.5 billion payable in cash for the next three years and 10 percent of the Gross Revenues of built up units or a pre determined minimum guaranteed return.

Their investment would reach P80 billion in 25 years. – Ferliza C. Contratista/NLQ (THE FREEMAN)