To discuss JV with Filinvest: Cebu City dads hold special session today

CEBU – Members of the Joint Venture Selection Committee (JVSC) and Filinvest Land Inc. (FLI) will be attending a special session of the Cebu City Council today for the discussion of a proposed P25 billion contract for a project at the South Road Properties (SRP).

Acting Vice Mayor Hilario Davide III yesterday said that members of the JVSC were asked to be present today as the contract to be signed to forge agreement between City Government and FLI will formalize the awarding of the project to the latter.

JVSC head, Cebu City Administrator Francisco Fernandez confirmed he will be there to witness the proceedings.

Davide said that FLI will also be sending a representative in today’s special session which is scheduled at 2 p.m.

The P25 billion-contract between the City Government and FLI will cover 50.6 hectares of the SRP.

The discussion will be done after the Committee on Laws, Ordinances, Public Accountability and Good Government, headed by Councilor Edgardo Labella will give its recommendations in the committee report.

This shall be made as basis for the council to give authority to Acting Mayor Michael Rama to sign the contract on behalf of the city.

According to the contract, FLI will purchase outright 10.6 hectares worth P1.5 billion and will engage the city in a joint venture to develop a 40-hectare area under a profit sharing scheme.

For the 40 hectares, under the profit sharing arrangement, the city is guaranteed a 10 percent share of the gross sales of built-up space, which will be remitted quarterly.

On the other hand, a down payment of P348 million payable within 30 days from the signing of the contract will be made for the outright purchase of 10.6 hectares and its balance will be payable in six years.

Last Saturday, Cebu City Mayor on leave Tomas Osmeña had a teleconference with the councilors to discuss the development of the SRP.

Tinago barangay councilman Joel Garganera, who said he noticed irregularities in the transaction, is also expected to attend today’s session. — Ferliza C. Contratista/NLQ (THE FREEMAN)