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Luigi gets nod to sign deal with developer

Christell Fatima M. Tudtud (The Freeman) - June 27, 2018 - 12:00am

CEBU, Philippines — The Mandaue City has moved one step closer to converting mothballed Cebu International Convention Center into a world-class resort.

This development came after the Mandaue City Council approved a resolution granting Mayor Gabriel Luis Quisumbing authority to enter into and sign the concession agreement with the Millenium Pan-Asia Hotel and Resorts Inc. (MPAHRI).

“For the development and operation of an integrated tourism infrastructure project, to be built on the property owned by the city at C. Seno St., corner Ouano Ave., North Reclamation Area, Mandaue City where the now-defunct CICC stands,” read the resolution approved by the council during a special session Monday.

The schedule for the signing of the agreement though has yet to be announced.

The terms and conditions of the concession agreement, however, still need to be approved and confirmed by the City Council in consonance with the City Ordinance 14-2017-1159 or The Mandaue City Public-Private Partnership for the People Code.

But to be able to develop the controversial property, the city government needs to pay the final tranche for the purchase of the CICC.

Mandaue still owes the provincial government P100 million, which payment is due on June 30.

In August 2017, the Capitol agreed to sell the 33,000-square meter CICC building to the city government for P300 million.

The city paid the first tranche amounting to P200 million in January this year.

Once paid in full, Quisumbing said the MPAHRI will take charge of developing the property.

“So that it will be them to spend and we can have a share of their rental, the revenue, the taxation of that property based on terms that we put sa atong Swiss challenge earlier,” he said.

The mayor said the city government expects to recoup the P300-million payment within three years.

MPAHRI won the recent Swiss challenge, a form of bidding for big-ticket projects.

The firm, Quisumbing said, will pay the city P200 million.

“For us that’s a very, very good arrangement because our current awardee sa Swiss challenge nato will be paying P200 million pesos upfront so ma-hug bitaw nga P100 million ra atong nagasto para sa CICC,” he said.

The property’s monthly rental fee is pegged at P3 million with increase of rate every four years.

Aside from revenues, Quisumbing said the project is expected to generate thousands of job openings.

“That is pure profit to the city not to mention their expectation that will create something like 6,000 new jobs direct employment for Mandaue City and another 12,000 indirect employment—kanang mga panday mga contractors, etc. So, this is a tremendous and exciting opportunity for Mandaue City. It will provide a very important boost to our economy,” the mayor said. — KBQ (FREEMAN)

 

CEBU INTERNATIONAL CONVENTION CENTER
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