Tuesday, October 07, 2008 CH committee to handle SRP By Rene H. Martel & Linette C. Ramos Sun.Star Staff Reporters
CEBU City Mayor Tomas Osmeña yesterday assured there will be no delay in the negotiations on the sale of the South Road Properties (SRP) despite his absence.
This, as he defended his earlier announcement to allow Filinvest Land Inc. (FLI) to ask for a development cost refund when he vehemently opposed a similar request by a consortium, whose unsolicited proposal the Metro Cebu Water District eventually rejected.
In 2006, Osmeña opposed the Ayala-led consortium’s offer on the Carmen Bulk Water Supply because of the P150-million project development cost refund provision in the terms of reference for the Swiss challenge.
It meant that whoever will challenge the consortium’s bid and win will have to give the amount to the consortium.
FLI is offering a joint venture with the city to develop a 50-hectare portion of the SRP, including an outright purchase of 10 hectares worth P2 billion.
It plans to invest at least P80 billion on the project, which includes residential buildings, high-rise hotels, a retirement and medical facility and commercial areas, among others.
Compensation
“Let me put it this way. When you talk about development cost, what I see is what I call proprietary rights. If they (challenger to FLI proposal) are going to use the design of what Filinvest wants to do, I think Filinvest deserves some compensation for that,” he said yesterday.
“But it is not P100 million. I don’t even think it’s P1 million. It’s nothing that will imbalance the transaction. In the case of Ayala, the whole project is what, P700 million?
Development cost, P100 plus million? That’s too much. In this case, P2 million, P1 million….(Filinvest) is not even asking (for a development cost refund) because they really want this transaction,” he added.
Lawyer Aristotle Batuhan last Sunday said that by changing his stand on the collection of development cost refund in a competitive bidding, the mayor could turn off investors and businesses here.
He said Osmeña is “sending the wrong signal to investors that rules in the city can change every now and then, depending on the nature of the project and who you’re talking to.”
“He’s now saying that a refund is acceptable, but it will not be necessary because Filinvest will match any offer. He’s missing the point. The point he made before in the water project is absolutely no development cost,” said Batuhan.
“But here he goes; he’s even speculating on the amount. In principle, he’s changing the rules of the ballgame,” the lawyer added.
Told that it was his consistency that Batuhan questioned, the mayor reiterated that the issue is not about consistency but on using somebody else’s design.
“If they want to make their own design, they don’t have to pay anything. But if you want to use somebody else’s design, I think you have to at least pay for that,” the mayor said.
Yesterday, Osmeña said that because he is going to the United States for further medical check-up on a mass found in his bladder, the committee created by a city ordinance to look into joint venture proposals will handle the negotiations.
Aside from FLI, there are other entities that have shown interest to invest in the SRP.
The committee, he said, “will proceed as quickly as possible.”
“As a matter of fact, the words I got, from an indirect source, two are asking ‘is this (his US trip) going to delay the negotiations?’ I will have to assure them there is going to be no delay,” the mayor said.
He said he liked that such question was asked, because it means the proposals are still being proffered.
“Akong kahadlokan ba is they might withdraw ba…. (So) that was a very healthy question. So I feel comfortable,” he said.
Vice Mayor Michael Rama will serve as acting mayor in the meantime that Osmeña is in the US for his medical checkup.
On the critical issues, many of the decision have been made already. So it’s only the issues that we do not anticipate (that City officials have to prepare for). But I think they can handle it,” the mayor said.
Rama and City Administrator Francisco Fernandez said the mayor has already given them instructions on what to do while he is away, specifically on the FLI offer.
Osmeña met with Rama, Fernandez, some department heads and members of the Joint Venture-Selection Committee (JV-SC) shortly before he left for Bacolod to visit his mother yesterday morning.
The mayor and his wife Margot got back yesterday afternoon but he took another flight to Manila to meet with officials of the Commission on Audit (COA).
“He wants to talk to COA before he leaves to see to it that everything is okay.
He just wants to inform COA of what happened to him. We have to prepare for the worst, and he might not be able to come home right away if the deal with Filinvest is closed. So we’re asking COA if everything can be finalized without him,” said Fernandez.
Osmeña has filed a one-month leave and will leave for the United States tomorrow for further medical exams, after his doctors found a mass in his urinary bladder, which is reportedly suspected to be cancerous.
He might also undergo surgery there if doctors would recommend it. The mayor might be gone for less than a month, or longer, Fernandez said.
“We don’t know for sure how long he will be gone but it will be business as usual. The vice mayor will be the one in charge. The SRP transactions will push through as if he’s present. Nothing should be disrupted, that’s what the mayor wants,” he continued.
At the legislative department, well wishes and prayers poured in from the vice mayor and the councilors, who were gathered in a meeting yesterday noon to be briefed about the mayor’s health condition.
Rama said he briefed the councilors on the results of their meeting with the mayor yesterday morning, and reminded them to continue to do their job while the mayor is seeking treatment.
“It will just be like what I’ve been doing on several occasions when he was on leave. I will be getting a lot of documents for approval... As for the SRP, seeing it as a very important and urgent matter, Tommy said that it has to proceed (without him) because no matter what, government has to operate,” he told reporters yesterday.
“But we always hope that when the sale is finalized, the mayor will be around with us. In the meantime, the whole process has to continue,” he added.
