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Capitol considers TRO on SRP deal

First Posted 13:16:00 01/13/2009

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CEBU CITY, Philippines – After being rejected twice by Cebu City Hall, the Cebu provincial government considers challenging the looming joint venture deal between the city and the Filinvest Land Inc. (FLI) to develop 50.6 hectares of prime South Road Properties (SRP) land in court.

Representative Pablo John Garcia of Cebu's 3rd District said the Capitol will file an injunction in court against the joint venture selection committee's decision denying their appeal for reconsideration to challenge Filinvest's unsolicited proposal to the city.

Prior to their appeal, the JVSC rejected the Capitol's challenge to Filinvest's offer by declaring them ineligible to qualify under the city's joint venture ordinance.

Cebu City officials said the ordinance qualifies only private sector entities to present a counter-offer to Filinvest's bid.

“There are other options like going to court. The Capitol will have to sit down and discuss with its legal team what options to take,” Garcia said.

The city's Joint Venture City Ordinance 2154 adopts the National Economic Development Authority (NEDA) guidelines in entering into joint venture agreements with private entities.

But Garcia said city officials have made certain rules in deciding which project or proponent is acceptable or not.

“It is purely discretionary to accept or reject a bid. They themselves set out certain rules to determine if the proponent is qualified or not qualified,” the congressman said.

Aside from their status as a political unit, the committee also questioned the Capitol's track record as a developer as well as its incomplete financial records at the Commission on Audit (COA).

Garcia said the Capitol's legal team will study on whether the selection committee violated their own rules based in the ordinance.

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