Cebu City, Manila-based firm to sign parking meter deal

CEBU, Philippines — The Cebu City Council has authorized Mayor Tomas Osmeña to enter into a three-year agreement with the Tokagawa Global Corporation (TGC) for the modernization of the on-street pay parking here.

Legislative body, in yesterday’s regular session, approved the resolution seeking to develop the on-street pay parking management and collection services in several parking areas in the city.

“The second party (TGC) ensures the guaranteed minimum annual income of the first party (Cebu City) amounting to P8,798,088.50,” read portion of the approved Joint Venture Agreement (JVA) between the city and the TGC.

City Councilor Pastor Alcover, Jr. expressed his concern over the possible displacement of parking aides in the city because of this development.

Councilor Jerry Guardo, who penned the measure, assured that no worker will be displaced since 72 personnel will be absorbed by the TGC.

He said there will be additional hiring of 72 parking aides for the second shift of the pay parking and collection services.

“It was very clear during the executive session that all affected workers will be absorbed and they will receive the same incentives, salaries from Tokagawa,” he added.

The city government earned an annual P8.3 million from parking fees in previous years.

With the three-year contract with TGC, he said the city will get over P8.7 million from the private company or 22 percent of the gross revenue proceeds, whichever is higher.

The TGC will be charging all kinds of vehicles at P20 per hour, in accordance with the city’s ordinance.

Under the agreement, the private firm will start the project six months from the approval of the undertaking.

Solomon Say, chief financial officer of TGC, earlier said the company is ready to deploy its personnel two weeks after the approval and signing of the JVA.

The transaction includes the rehabilitation of the parking areas along Colon Street and its side streets like repainting of parking slots and installing parking signs.

Say said the company will be using handheld or point of sales parking management devices.

The firm will also provide necessary equipment, technology, management, and manpower, among others to implement the project at no cost to the city. — KBQ (FREEMAN)