Sabado, Hunyo 2, 2012

Gwen Capitol deal with Filinvest ‘better’ than SRP


5/29/2012

Cebu Gov. Gwendolyn Garcia yesterday said the P6-billion venture between the Capitol and Filinvest Inc. to build a BPO complex in Salinas Drive was better in many ways than Filinvest’s joint venture with Cebu City in the South Road Properties (SRP) which was negotiated during the administration of then Cebu City mayor Tomas Osmeña.

Her comparison came after Rep. Osmeña said her brother Cebu 3rd district Rep. Pablo John Garcia should now apologize for describing Filinvest’s joint venture development in the SRP as a “corrupt” deal in 2009 when Garcia demanded a congressional investigation in a privilege speech where he called the Cebu City joint venture a “sweetheart deal” that gave Filinvest undue advantage.

Governor Garcia said there were several pluses in the Capitol’s deal.
First, the province did not sell the Lahug lot and instead leased it to Filinvest, a move she said is more beneficial than selling reclaimed land in SRP.

In terms of income, Garcia said the Capitol will receive P600 thousand a month as rental from Filinvest and around half million pesos a year from the venture's gross annual revenue over 25 years.

In Cebu City’s joint venture deal with Filinvest, the private developer is paying P1.5 billion in seven annual installments to Cebu City for 10.6 hectares .

For the other 40 hectares, Cebu City will receive a 10 percent share from sale proceeds.

Governor Garcia said said the 10 percent share of the city from other lots sold will still be reduced because an “exclusive marketing agent,” as stated in the contract, will get a portion of the city's share.

“On the SRP venture, they already sold the lot so if it gets developed, we will not get anything out of it. The 40 hectares will be developed and the city will get only ten percent from it. There is even an exclusive marketing agent who will also receive a share of the city's 10 percent. I don't know who that agent is but it is stated in the contract. “

In contrast, Garcia said the Capitol's joint venture deal with Filinvest to build a BPO complex in barangay Lahug under a Build-Transfer-Operate scheme will increase outright the assets of the province by P5 billion in the next four years.

She pointed out that the the P1.7 billion building of the BPO complex will be turned over to the Capitol once it is finished, a clear advantage over the 10 percent share of the city on their SRP venture.

“In our venture, after the first building is finished, it will immediately be ours. The asset is turned over to the Province of Cebu which will immediately add to our assets by P5 billion without selling property, ” she said.

Governor Garcia said that if Osmeña wants to make his own privilege speech in Congress to comment on the Capitol's venture.

“Once he has decided on his confusion of whether he is a spokesman for Filinvest or a congressman of the south, he can always rise in Congress and deliver a privilege speech. Make that his story because we have been waiting for so long. Hopefully we could finally hear his voice. That is if he can do it,” said Garcia.

She said she was amused to read about Osmena’s criticism in the newspaper.
“ I was amused and wondered whether Tomas is already a spokesman of Filinves. If that is so, II thought he was a congressman,” she said in a press conference.

Cebu City Mayor Michael Rama for his part said there was no need for Congressman Garcia to apologize.

“Let’s not talk about the past but instead learn from the past and build up for today so we can be able to deliver the goods for tomorrow,” Rama said.

In 2009, Cebu City signed a joint venture agreement with Filinvest to develop 50.6 hectares in the 300-hectare reclaimed land of the SRP for a mixed development of medium-rise residential buildings and retirement complex.

Part of the 10.6 hectares paid for by Filinvest in an outright purchase has ongoing construction for the seaside residential and commercial complex of Citta di Mare and Amalfi Oasis.

Meanwhile, the Province of Cebu and Filinvest last Saturday broke ground in a 1.2 hectare province-owned lot in Salinas Drive near the Asiatown IT Park for a BPO complex under a BTO scheme.

Filinvest said it is set to start construction of a P1.7 billion building for business process outsourcing in the Capitol property by the third quarter of this year.

Garcia said the project underwent a public bidding participated by three big companies namely the Ayala Corporation, Metro Gaisano Group and Filinvest.
She said the SRP venture did not have the benefit of a public bidding.

“Was the SRP agreement examined well so that its provisions are advantageous and not grossly disadvantageous to the government that we are representing?,” she asked, repeating doubts raised by her younger brother Congressman Garcia in his April 20, 2009 privilege speech in the House of Representatives.

Filinvest submitted an unsolicited proposal to Cebu City for the SRP lots. After a review, the proposal underwent a Swiss Challenge, where other bidders were invited to match or better the proposal. The Province of Cebu tried to enter but was considered unqualified to make a bid because the local government was not considered a real estate developer. /Peter L. Romanillos, Correspondent

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