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Cebu City council okays P25-B joint venture project with Filinvest Land

By Rene Borromeo Updated January 26, 2009 12:00 AM

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CEBU CITY — Gotianun-owned property developer Filinvest Land Inc. (FLI) has been given the green light to go on with a proposal to develop a portion of the South Road Properties (SRP) here.

Acting City vice mayor Hilario Davide III has assured that the Cebu City Council will not delay the approval of a resolution that will formalize the contract for a joint venture with FLI.

The members of the Joint Venture Selection Committee, headed by city administrator Francisco Fernandez, awarded to FLI the contract for a P25-billion joint venture project at the SRP which acting mayor Michael Rama can now sign following the nod of the city council.

Davide said the issue about the joint venture project with FLI will be discussed by the council on Wednesday.

Fernandez said the city council will not delay the granting of authority to Rama to sign the contract, adding “they must do their job without sacrificing the issue of transparency.”

The agreement state that within one month after the actual signing of the contract, FLI will release its initial payment for 10 hectares. The total will be paid within a period of three years.

In its proposal of FLI offers to purchase 10 hectares for P1.5 billion and to develop the other 40 hectares in a joint venture scheme with the city.

Fernandez said this is very timely, because the city needs P338 million next month to pay its loan from Japan.

Meanwhile, Fernandez said he is hoping that Cebu provincial officials will no longer pursue their intention to bid for the same area that the FLI wants to develop.

Rama has rejected the appeal of the Cebu provincial government to contest the unsolicited proposal of FLI.

Fernandez explained the province is not qualified to challenge the offer of FLI, first because it is not a private entity as provided for under the city ordinance that created the joint venture agreement.

Provincial Capitol consultant Rory John Sepulveda, in a press conference yesterday, said the administration of Governor Gwendolyn Garcia was not surprised after the Cebu City government awarded the joint venture project to FLI.

“We’re still on top of the situation,” Sepulveda noted.

He said that despite of not being able to come up with the P125-million bond the city asked from the province for the joint venture, Capitol will still move forward with its plans.

He added that the provincial executives have a game plan and that is to increase economic activity to generate more jobs.

“This is what we are going to do in response to the world economic slowdown,” he said.

Part of the game plan is to continue building roads, bridges and school buildings.

In addition he said they would continue delivering basic services to Cebuanos, especially to investors and tourists, and putting up economic enterprises.

When asked if they will file an appeal or give up on the SRP joint venture project, Sepulveda said that they will wait for its finalization before commenting on the matter.


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