Home 
IN rejecting the Cebu provincial government's counter proposal for a joint venture on 10 hectares of prime lot in the South Road Properties (SRP), the Cebu City Hall yesterday appealed to the Capitol not to delay the deal between them and Fil-Estate Land Inc. (FLI).
“We cannot wait too long because the longer we delay, the longer the project will be implemented and we are paying millions everyday for the loans (used to purchase the SRP),” Cebu City Administrator Francisco Fernandez said.
Fernandez chairs the joint venture selection committee (JVSC) which declared the Capitol's counter proposal as ineligible owing to legal, technical and financial requirements that it supposedly failed to meet.
The JVSC will submit their report to Acting Cebu City Mayor Michael Rama on Monday for the final decision on the Capitol's counter offer.
Rama said he will wait for the JVSC report to “intelligently decide” whether or not to approve the committee's recommendation.
Under the city's joint venture ordinance, any appeal will be acted on by the mayor or his authorized representative and the decision will be final and executory.
The Cebu City government will then have to wait for the deadline set by the ordinance to award the property to the main proponent which is at least 30 days after the second publication of the invitation to bid.
Juan Saul Montecillo, the JVSC representative to the mayor, said while they don't argue with the Capitol's position that they also have corporate powers as stated in the Local Government Code, it does not classify them as a private entity as specified in the joint venture ordinance.
Montecillo said a provision in their counter proposal said the Capitol will “exercise its power as a political subdivision of the national government” which is proof that it is a government and not a private entity.
He said while the ordinance does not exclude government units, it is based on guidelines given by the National Economic Development Authority (Neda).
Aside from this, the committee said the Cebu provincial government failed to comply with the list of requirements Cebu City Hall submitted to them last Dec. 17.
These include a detailed record proving their capability to handle a development project similar or better than that proposed by FLI as well as complete financial statements from the Commission on Audit (COA).
Meanwhile Fernandez said if the Capitol is serious in pursuing a joint venture with the city on the SRP, it can do so through public consultation and not under the JV ordinance.
“But it is not a guarantee that their proposal will immediately be approved because it will also depend what kind of project,” Fernandez said.
Cebu provincial government officials expressed disappointment over the committee's decision.
Capitol consultant Rory Jon Sepulveda said not only was their offer rejected, but they were blamed for the current financial situation the city finds itself in.
Sepulveda said the city government should have included their debt servicing as part of their SRP masterplan if they have one.
“Their liabilities are of their making,” said Sepulveda.
He said the Cebu provincial government merely wanted to present a better offer for the SRP lots.
“The effect of this is that we are giving an opportunity for the city to secure the best possible price or terms,” he said.
Sepulveda said whether or not the province qualifies as a real estate developer is a legal issue that has yet to be resolved.
He also said he found it disturbing that Fernandez already announced the city's rejection of the Capitol's offer even if they have yet to receive official communication from them.
Sepulveda said under the joint venture guidelines, it is supposed to be the city mayor that should decide on their MR and not the joint venture committee.
