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Tuesday, August 23, 2005
Hospital for balikbayans?
Cebu City Hall is inviting investors in the US to build a hospital in the South Reclamation Project (SRP) for balikbayans.
The balikbayans can also avail themselves of the services of retirement centers, which are being eyed at the 295-hectare property.
Mayor Tomas Osmeña said he is willing to donate one hectare of the SRP for the hospital.
“Whatever I say is subject to approval of the City Council but I’m taking the initiative,” the mayor said.
Balikbayans retiring in Cebu City will be advantageous to the City, “as they will come and spend their money here,” he said.
He agreed with SRP manager Nigel Paul Villarete that the next year could be difficult for the City Government, because while it will market the project to investors, it will also have to start paying the full semi-annual amortization for the principal and interest of the P6.3-billion loan.
“Try harder”
“We have to try harder but I’m confident we will be able to make it. I’m sure the income (next year) will be higher than this year. It’s only because the project is so big for us. We have to get into a decision whether we have to get into it or not,” Osmeña said.
In a related development, Villarete, also the city planning and development officer, reacted to a Commission on Audit (COA) report on the top 10 local government units (LGUs) in provinces and cities in terms of income, assets, spending and liabilities.
Villarete said COA was only looking at the accounting office’s records as their basis for the ranking. He said that what was reflected in the records is just the value of the SRP construction.
Actual value
He said had COA looked at the actual land value of the SRP, it would find that Cebu City already has P10 to P20 billion more in assets. Cebu City would have been number one in the ranking instead of fifth, he said.
He also mentioned the aspect on the LGUs spending and liabilities.
“If an LGU has a high income, it will definitely incur a higher spending pattern.
High income reflects high spending. It would be wise for an LGU to spend an income it generates on development than to earn less and spend it on unnecessary things,” he said.
On the hospital plan, Osmeña said he is writing the City’s contact in the US to build a facility here. He said balikbayans don’t like to retire in the Philippines, because most hospitals here are not accredited with the international insurance companies servicing these balikbayans.
This lack of accreditation prevents the retirement centers from putting up their facilities here.
Among the reasons he cited is the “local mafia type” of preventing the entry of American medicines, goods and services in the market.
Other initiatives the City is taking include negotiations with the Visayan Electric Company for a possible joint venture in selling electricity to SRP investors, and converting garbage into methane gas as a power source.
The mayor believes the City Government can generate income from the SRP because even the Mactan Economic Zone (MEZ) 1 and 2 are earning revenues without necessarily selling land.
He said the 50-hectare MEZ 2 is earning not only from rental but also from selling power, water, communication and other utilities to concessionaires. (GAC)
(August 23, 2005 issue)
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