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Tuesday, April 04, 2006
Capitol eyes P1.2M earnings with dev’t of Banilad property
Next year, the Cebu Provincial Government is expected to earn almost P1.2 million a month with the development of its prime lot in Banilad, Cebu City.
Yesterday, Capitol held a pre-bid conference with four firms expressing interest in developing the place. Two of these are SM companies, one is a Malaysian firm while the fourth is a Cebu-based firm.
The winning bidder will have a one-year construction period.
P2M rental
After signing the contract with the Province as soon as the facility is operational, the company will start paying the almost P2 million rental a month.
Capitol will hold the bidding on April 26; the signing of contract will immediately follow.
A year after the signing of contract, the firm will start to pay at least P200,000 to the Provincial Government. The amount, however, will escalate by five percent after the first five years of operation.
As soon as the facility is completed, it will be turned over to the Capitol and the firm will just be given the rights to operate it within 25 years.
Capitol has set that the facility to be built must be at least worth P250 million and upon its completion, Capitol will start to collect P999,740 as rental.
“This is a prime commercial project in a very strategic location. The Province will be earning without selling the property,” she said.
Sonny O.’s firm
Among those who submitted the letter of intent for the project was former senator John “Sonny” Osmeña’s firm. But like several other interested bidders, it failed to submit the financial, technical and legal papers that Capitol was asking.
Osmeña had questioned the ownership of the lot saying it was within the Friar’s Land, which is owned by the National Government.
Lately, however, a ruling was issued stating that those who possess titles for the lots within the Friar Land are considered real owners of the property. (MBG)
For Bisaya stories from Cebu. Click here. (April 4, 2006 issue)
Write letter to the editor.Click here.
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