Provincial Board on Cebu City offer for 93-1 lots: P500M not enough

CEBU, Philippines- The P500-million offer of the Cebu City government as payment to the Capitol for the province-owned lots covered under Provincial Ordinance 93-1 occupied by the city’s constituents may not be enough.

Board Member Grecilda Sanchez, chairman of the Provincial Board’s committee on provincial and municipal properties, said the offer tackled during their caucus yesterday and it was discussed that the amount is just around half of the lots’ current value.

She said Board Member Alex Binghay, former chairman of the committee, told her that the amount would even reach more than a billion if the prevailing market value of the land is taken into account.

“Dunay increase over the years. This is one of the aspects that we have to consider… P500 million is not enough,” she told reporters.

She, however, said everything has yet to be finalized and that the figure estimated by Binghay may still be lowered considering that the property would be utilized for socialized housing.

“Fair negotiation lang,” she said, adding that the province would also come up with a counter-proposal during a workshop on Friday.

Cebu Governor Hilario Davide III will meet the PB members on that day to discuss City Hall’s proposal. Members of the technical working group for provincial properties occupied by informal settlers will also be present in the said workshop.

Davide said they would confer on options available for the resolution of the issue, a month after he got a copy of the city’s proposal.

Approved in 1993, PO 93-1 provided a scheme for residents to pay monthly amortizations for them to own the property they are occupying. However, the period for payment expired with many of the settlers still owing the province, prompting then governor Gwendolyn Garcia to issue eviction notices.

The 51 hectares covered by PO 93-1 are subdivided to at least 4,364 home lots in the Cebu City barangays of Kamputhaw, Capitol Site, Kalunasan, Busay, Luz, Lahug, Mabolo, Apas, Lorega-San Miguel, Kasambagan, and Tejero.

Of the 4,364 occupants, only 1,445 have fully paid despite the 10-year extension set by Capitol for payments. The problem is compounded by new homeowners claiming that they were also beneficiaries.  

Intervening for the residents, then Cebu City mayor Tomas Osmeña proposed to Garcia in 2007 to swap properties with the province and crafted an agreement, which was then presented to the City Council for approval.

The agreement, however, fell through after then vice mayor Michael Rama, now Cebu City mayor, raised some concerns regarding the terms of the land swap deal.  Rama later averred that he just wanted to perform his duty as a prudent public official, believing that the deal was disadvantageous to the city government.

The resulting exchange of words in public caused Osmeña and Garcia’s relationship to turn sour, which remains up to this day.

“We will be studying all those options.  But we are seriously considering the offer (of the City Hall)… As what I have promised, we’d like to resolve this 93-1 issue before my term ends,” he told reporters.

Rama also vowed to resolve the same concern within his term.

Of the P500 million earmarked by Cebu City this year, P300 million is intended for the development of the properties and the remaining P200 million is for lot procurement.

Apart from the City Hall’s offer, other options laid down to resolve the 93-1 issue include the sale of the properties to the homeowners’ association and the land swap deal between the city government and the Capitol.

The city government earlier signified its intention to pay an initial P100 million to Capitol.  This was stipulated in a proposed memorandum of agreement it submitted to the Capitol.

Under the proposed agreement, the control and possession of the subject properties would be transferred and delivered to the City of Cebu upon the execution and signing of the agreement and payment of P100 million. —/RHM (FREEMAN)