INQUIRER Global Nation

THE Cebu provincial government is serious with its plan to invest in the South Road Properties (SRP) and challenge the unsolicited proposal of the Filinvest Land Inc. (FLI).

Capitol officials, however, said they are in a quandary as to who to deal with in the Cebu City government.

Lawyer Rory Jon Sepulveda, Capitol consultant on information and revenue generation, said he was having difficulty drafting his letter of intent because of confusion as to who to address it to.

He said he no longer knows “who to deal with” because there are so many personalities who are talking in media reports.

He said he made a draft of at least three letters addressed to acting mayor Michael Rama who is now in Bangkok, Thailand; Cebu City Administrator Francisco Fernandez and acting Mayor Hilario Davide III.

Gov. Gwendolyn Garcia said she could sense that city officials are beginning to “panic” with Capitol's plan to challenge the FLI offer.

She said she had read from newspaper reports that some city officials did not welcome the province's offer while other found it amusing.

“I assure you sir that we did not make that offer to amuse you,” said Garcia.

She said that it was also unlikely for Davide to urge the province to instead invest its money on the 10 poorest towns.

She said tavide is not in the position to give that advice since he has not even been to the countryside.

“But over the above the developments we have instituted in our towns and cities, we can still afford to challenge the Filinvest offer,” she said.

Sepulveda said they also have private investors that could partner with the province in their plan.

However, Sepulveda said there was a need to clarify the need to pay deposits to the city government and need to refund its development cost should FLI lose the Swiss challenge.

Davide has said that based on Neda guidelines, the challenger will have to deposit to the city, one percent of the total project cost.

Payment of development cost, if there will be any, is yet to be determined.

Rep. Pablo John Garcia said City Administrator Francisco Fernandez did not come clean on whether a challenger would have to pay Filinvest for “development cost” should the latter lose in the Swiss challenge over the proposed joint venture for SRP lots.

He said he remembered that Cebu City Mayor Tomas Osmeña was opposed to the payment of development cost to Ayala Consortium in the proposed Carmen Bulk Water project.

“If the City would now require challengers to pay Filinvest for development cost should the latter lose. Can we now say, in the words of Osmeña, that the (Filinvest) deal is ‘repulsive’ and it is `ridiculous’?” said Garcia.

But Fernandez said the province should study the Joint Venture (JV) ordinance which is being followed by the city in its negotiations with FLI.

“I would be happy to hand carry the ordinance to them (provincial government),” Fernandez said.

He said he would also be happy to explain the ordinance to them.

Fernandez said that the JV ordinance states that the proponent should deposit a proposal security to the Cebu City government. The development cost is still subject for negotiation, he added.

He said that at this point, the FLI has not yet formally put up their total project cost.

But he said the FLI initially said it was willing to invest P80 billion worth of infrastructure on the reclamation area that will be for both the international and local markets under a joint venture arrangement with the Cebu City government.

The city could not determine yet how much is the proposed security that FLI has to deposit.

But the city will require them to put up their total project cost because the proposal security is their requirement before publication for bidding.

The development cost was not discussed yet with Osmeña, who is on medical leave in the United States, the Joint Venture Selection Committee and the City legal officer.

“As of now it will be subject for negotiation. The legality and the wisdom of having a development cost, we have not (talked about it) and it is still premature to discuss it,” he said.

“But I have asked the legal (office) to study this matter. I have asked our lawyers to review our JV ordinance if there is a development cost,” Fernandez said. /With a report from Reporter Marian Z. Codilla