“Road access” woes hamper BPO project

CEBU, Philippines - Filinvest Land, Inc. and the Cebu provincial government are closely working to resolve the “road access” issue that has slowed down the construction of the proposed P6-billion business process outsourcing center, according to an official of the private developer. 

The first building of the 4-tower BPO center was supposed to be completed and operated starting last year.

But until now, none of the towers are completed yet allegedly because of Ayala Group’s refusal to give access to FLI’s heavy equipment through W. Geonzon Street at the Cebu IT Park.

In an interview with reporters, FLI area general manager for Visayas Allan Alfon said their company has been trying to resolve the issue especially with the provincial government which is its partner for the project.

“The first building should have been completed early this year, but because of the problem in equipment access, so this has been delayed already beyond our control,” Alfon made this statement during the recent launching of the showroom of the firm’s Amalfi project at the South Road Properties.

“So, we are working closely with the province,” he added.

According to the official, they have been targeting to finish the first tower by the end of this year -- that, if the concerned companies would reach to an equitable agreement.

The construction of the said BPO complex is located outside the IT Park, and W. Geonzon St. is the lone wider access going to the site.

Governor Hilario Davide III already claimed the said street is considered a public road, even citing a Cebu City Council resolution that has also suggested it as government-owned road.

However, an earlier report said the Philippine Economic Zone Authority has confirmed the right of the Ayala’s Cebu Property Ventures and Development Corporation over the road in Barangay Apas, Cebu City.

Alfon said they recently sent a letter to CPVDC to discuss and resolve the issue; they have also asked the involvement of the city and provincial governments to see options in making an agreement.

The letter says, “As drivers of economic prosperity for Cebu, we believe we can co-exist and anchor our strengths together for the common good. We feel we can work things out without any disregard to our respective business objectives and those of the clients we serve.”

“This investment is really substantial,” the Filinvest official said, referring to the BPO center which will rise on a 1.2-hectare government-owned lot that the old Cebu City jail used to occupy. “In fact, there are a lot of potential locators already. So, we are in a hurry to resolve the issues.”

The CPVDC, for its part, also recognizes the need to resolve the matter in a way that honors the respective rights and business interests of the involved companies.

The Filinvest Cebu Cyberzone, the project’s name, is expected to initially generate at least 4,000 jobs for its first tower alone. The employment will gradually increase to some 20,000 jobs in the next five years, he added.

The said project has been done through a build-transfer-operate agreement between the Province of Cebu and FLI. A BTO contract is an agreement in which the private sector builds a certain project, operates it after the transfer of the project’s ownership to the government.

FLI has committed to build the BPO hub and operate it for 25 years after transfer of ownership.  (FREEMAN)