CEBU, Philippines – The new BPO project of Filinvest Land, Inc. will usher in thousands of jobs into Cebu’s outsourcing industry once it starts operations in the first quarter of next year.
Filinvest officials noted BPO operations in the firm’s Cyberzone would start by March or April in 2015, based on the decision of its prospective tenants.
The first tower, which was inaugurated last Friday is expected to initially offer 4,000 jobs.
Maricel Lirio, vice president for office leasing of FLI subsidiary Cyberzone Properties, Inc., said the employment would eventually increase to 12,000 considering two to three work shifts are applied in call centers.
The four-tower business complex which occupies the 1.23-hectare government-owned lot in Barangay Apas, Cebu City is seen to be completed beyond 2020; the second tower is to be completed in 2017. The BPO center is a joint project of Cebu provincial government and FLI.
Income
Provincial Administrator Mark Tolentino, in an interview, said the government has been getting P600,000 monthly rental fee from Filinvest for two years already even if the business has not started yet.
The property firm pays the fee for occupying the 12,290-square-meter lot which the old Cebu City jail used to occupy. The lot’s rental rate per square meter is P50.
The province would also get a two percent share of Cyberzone’s gross revenue by the time its operations start, he said.
“We hope the project will be underway because we also now want to get the share already. So, we can fully realize its income potential,” the administrator noted.
The project involves a build-transfer-operate agreement between the provincial government and FLI.
BTO is a contract in which the private sector builds a certain project, operates it after the transfer of the project’s ownership to the government. The private firm commits to operate it for 25 years after transfer of ownership. After that period, the contract can be renewed.
Conflict
Company officials also expressed hopes the perimeter wall along W. Geonzon St. that separates IT Park of the Ayala-owned Cebu Property Ventures and Development Corp. and the P5-billion BPO complex of FLI would be demolished anytime this month.
The provincial government has been mediating the conflict between FLI and CPVDC after the latter has prevented the former from accessing the said road which fronts the 240-meter facade of the BPO complex.
Lirio pointed out the issue has already affected the firm’s deals with its prospective BPO locators.
“They are actually asking about it,” she said in a press interview, confirming the issue has already affected talks with tenants.
“We have very serious prospects but have not signed (any agreement) yet. Their (tenants) requirement actually is on the first quarter so by that time, we are hoping the wall is down already -- the sooner the better," she added.
Cebu Governor Hilario Davide III assured the wall should be destroyed this month as some BPO companies would already start operations early next year.
Allan Alfon, FLI vice president for Visayas strategic business planning, said: “We continue to trust the province of Cebu especially the governor that based on his commitment it (the wall) will be torn down by next month.”
Lirio also claimed they could have signed a deal with a BPO firm which was supposed to operate late this year. “But they are hesitant to do so because of the issue. We lost the account. They wanted to move in already but we can’t guarantee them yet.”
In addition, the Philippine Economic Zone Authority already declared last August 9 the project as an IT center, but President Noynoy Aquino has yet to sign the accreditation.