CEBU, Philippines — Is Cebu City government the “real” owner of the nine-hectare Kawit (Cauit) Island at the South Road Properties where the proposed P18 billion integrated resort and casino will be constructed?
City Councilor Jocelyn Pesquera raised the question during the committee hearing yesterday that discussed the technical and legal matters surrounding the proposed joint venture agreement between the city government and the John Gokongwei-led Universal Hotels and Resorts Inc.
Pesquera said she raised the query because the city entered into agreements with the Department of Health many years back that may put the city’s ownership of the property in question.
“I would like to inquire from the City Legal (Office) if in the process of the contract review, did they account the memorandum of agreement entered by the city government and the DOH?” she said.
City Attorney Joseph Bernaldez said the city signed two MOAs with the DOH relative to the Kawit Island property, which was formerly reserved for Quarantine Service and the Marine Hospital Service.
But according to Bernaldez, former president Gloria Macapagal Arroyo issued Presidential Proclamation No. 1505 in 2008 declaring Kawit Island area as alienable and disposable and transferring its administration and ownership from DOH to the city government of Cebu to form part of the Cebu South Reclamation Project.
“There is no condition in the grant of ownership from the national government to the local government of the city. There are no qualifications here. It’s plain and simple giving and transferring of ownership from the national government to the City of Cebu,” Bernaldez said.
Mayor Tomas Osmeña, for his part, said the presidential proclamation superseded the provisions of the MOAs signed years ago.
“The Cebu City is the absolute owner of Kawit (Cauit) Island,” he said.
Since no conditions were stated in the DOH donation to the city, Pesquera said the city government should not have donated at least two hectares of land at SRP to the DOH.
Osmeña, however, said the city donated two hectares to DOH as compensation in their verbal understanding with the department officials.
“That was a nice exchange – from seven hectares to two hectares,” the mayor added.
Councilor Jose Daluz III also asked if the project needs to get a go signal from National Economic and Development Authority-7 since there’s an ordinance that provides that joint venture agreements should need to follow the guidelines of the NEDA, especially that it is valued at P18 billion.
But Bernaldez said that under NEDA’s new rules, only the national government agencies and government-owned and controlled corporations are covered; the local government units are not.
Councilor Raymond Alvin Garcia also expressed concern about the project’s traffic plan and sanitation plan, considering that the location is a coastal area.
Garcia said he does not want Cebu City to suffer the same fate as Boracay, which is facing the risk of getting shut to tourists because of alleged violations to environmental laws and policies.
Mybelle Gobio of UHRI assured the City Council that the company will go beyond the required safety measures, environmental laws, and traffic plan to ensure that the patrons will enjoy the new place.
To recall, UHRI committed to develop Kawit Island and put up there an iconic public art installation, commercial shopping centers with cinemas and boardwalk area, three hotels, integrated resort and casino with convention center, parking facilities, theater for performing arts, and theme park.
“Our proposed project will further boost tourist arrivals, increase commercial activities, and encourage further investment in Cebu City,” a statement of UHRI President Frederick Go read. —JMD (FREEMAN)