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Those interested in SRP joint venture need to submit requirements by Dec. 22

Wednesday, December 17, 2008 [ ]

Linette C. Ramos

Sun.Star Staff Reporter

MORE than a week after the invitation to bid for the joint venture to develop a 50.6-hectare portion of the South Road Properties (SRP) was published, there are still no takers yet on Filinvest Land Inc.’s (FLI) unsolicited proposal.

Acting Cebu City Mayor Michael Rama said yesterday that so far, no other developer or private entity has signified interest to challenge the FLI offer.

The bids and awards committee (BAC) secretariat also has not released any form for the pre-qualification and eligibility requirements, made available to interested bidders since last Dec. 8, the day the invitation to bid was first published.

The secretariat also did not get any inquiry about the bidding for the joint venture proposal.

“As far as I know, there are no interested parties yet,” said Rama, when asked if he has heard from any developer or private entity, through the Joint Venture Selection Committee (JVSC).

Private entities have until the morning of Dec. 22, or less than a week, to submit their eligibility requirements. The BAC will release tender or bid documents starting Dec. 23, but only proponents who are eligible will be given copies.


Eligible proponents have until Jan. 23 to submit their comparative proposals that will challenge FLI’s offer.

FLI submitted an unsolicited proposal for an unincorporated joint venture with the City Government over a 20-year period.

The venture will provide infrastructure facilities, buildings and other amenities in a central business district type of development, involving the construction of 875,000 square meters of building space over a 50.6-hectare area.

The firm intends to invest at least P25 billion in the project, which will include “mid-level to ultra high-end” residential buildings, a medium-rise complex, a cluster of high-rise hotels, retirement and medical facilities, and commercial areas.

Although the SRP has shifted from an export zone for light manufacturing firms to a mixed land use project, this does not violate the loan agreement between the City

Government and the Japan Bank for International Cooperation, now the Japan International Cooperation Agency (JICA).

City Planning and Development Coordinator Nigel Paul Villarete said there is no provision in the agreement that would hinder the City from shifting to a mixed land use project.

Land Bank of the Philippines (LBP) officials also said that condominiums, hotels and commercial complexes are not included in the negative list drafted by JICA or a list of establishments they will not allow to operate in the 302-hectare SRP.


An LBP official said the main concern of Jica is that the SRP should generate employment for Cebuanos.

“Condominiums or hotels are not included in the negative list. Although the negative list does not form part of the contract, it is discussed every time JICA meets with Land Bank and city officials,” said LBP Cebu Lending Center Department Head Elsie Tagupa.

What JICA prohibits, she said, are casinos, gambling establishments, night clubs, car racing and other racing activities and other establishments that promote vices.

The loan agreement also requires the City Government to retain ownership of at least 51 percent of the reclaimed property until it has fully paid the 12.315-million yen loan. The City’s balance as of August this year is pegged at 5.062 million yen.

If it enters into a corporation to manage and operate the SRP, the loan agreement also requires the City

to retain a 51-percent share of the stocks.


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