SRP helped Cebu City’s financial standing

CEBU, Philippines — Mayor Tomas Osmeña claimed that the 300-hectare South Road Properties plays a very big factor why Cebu City was hailed as the fourth richest city in the country today. SRP is Osmeña’s pet project in the 1990s.

An annual report of the Commission on Audit hailed Cebu City as one of the top 10 richest cities in the Philippines with P32.623 billion. Its financial position has improved a notch higher compared in 2015 where it ranked fifth.

Osmeña vowed to improve the management of the city’s assets to ensure that it is used to its full potential.

“At SRP, Cebu City owns it one hundred percent and we gave not a square meter to the PRA (Philippine Reclamation Authority) and had no private partner. Unlike the Mandaue reclamation where eighty percent was given to FF Cruz Corp,” Osmeña told The FREEMAN.

Osmeña said he got several criticisms when he planned the south reclamation project back then but he did not mind the critics.He recalled the time when Cebu City does not have any land and with only P120 million annual budget when he was mayor in 1990s.

The mayor said he plans to sell three hectares of SRP lots soon at P3.3 billion or P110,000 per square meter.

“I’m not interested in ranking. Pogi points is not my priority. We are selling the 3-hectares because we don’t want to use the billions that SM, Ayala and Filinvest gave us for the anomalous sale of 40 hectares,” the mayor said.

In 2015, former mayor Michael Rama sold a total of 45.2-hectare property to the consortium of Ayala Land, Cebu Holdings Inc. and SM Prime Holdings and Filinvest Land Inc. at P16.7 billion. The buyers have already paid at least P11 billion to the city government.

Osmeña, however, said he will not use the money as he is questioning the validity of the sale.

Councilor Raymond Alvin Garcia, a member of the opposition, said the city’s ranking is a result of the collective efforts of the past administrations.

“The SRP was planned during the time of Mayor Osmeña. But it was established during the time of Mayor Alvin Garcia. Mayor Rama sold part of the SRP which also helped in the city’s ranking,” he said, adding that all officials should be given recognition.

Councilor Jocelyn Pesquera said the city has more than P8 billion cash on hand and in bank because of the efforts of the previous administration.She said the city should pay off the SRP loan which was used for the reclamation in the past years.

In 1996, Cebu City government entered into an agreement with JICA for the Y12.315 billion or around P4.65 billion loan to finance the reclamation of what is now known as the SRP.As of now, the city still owes JICA over P2.3 billion and is supposedly due in 2025.

“The finances of the city will greatly improve if the city will pay the SRP loan in full and thus, save P300 million annually. As of now, the city is paying interest to land bank in the amount P300 million a year,” Pesquera said.

Councilor Margarita “Margot” Osmeña said the money can still be used for other immediate needs of the city.

“How can we pay? Why pay it when you can use the money for basic services?” she said.

Margot, deputy mayor for budget concerns, said the city’s ranking will improve once the city will use its full potential.

Councilor Jose Daluz III said everyone in the city government worked hard to improve the city’s ranking.

“I hope such richness will affect everyone in Cebu City. For me it’s not how rich Cebu City is, its how well its richness serve our people. I hope basic services are attended to. Good roads, good traffic system, a good shelter program, drainage mega infra, transportation solutions, a great business atmosphere and city officials who work hard and sincere in public service. For me that should be how the city becomes rich,” he said.

Councilor Sisinio Andales believes that the city will be number one in the coming years because of the leadership of the present administration.

He said the city should continue implementing massive collection of taxes, personal, land and building, business taxes, auction sale of tax delinquent real estates, and prudent spending.

Andales also said the city should attract more foreign investors by addressing criminality, and eradicate corruption in the city government. (FREEMAN)