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Thursday, February 24, 2005
Recla project issue: Whom will Arroyo favor?
By Liberty A. Pinili and Gingging A. Campaña
CEBU CITY -- Though she is known for refusing to comment on "local" issues, it is up to President Arroyo to end two cities' tug-of-war over part of the South Reclamation Project (SRP).
The Department of Environment and Natural Resources (DENR) submitted to President Arroyo last Tuesday a draft proclamation that authorizes the environment secretary to issue a special patent for the SRP.
But it is up to the President to decide whether she will allow a special patent to be issued to Cebu City, as the DENR attached to the draft proclamation some documents on Talisay City's claim on a portion of the SRP.
Chito Reyes, technical assistant to the office of DENR Undersecretary for Lands Manuel Gerochi, said the DENR has to wait for the President before acting on Cebu City's application for a special patent.
The lack of a title or special patent for the SRP is keeping the Cebu City Government from taking in investors, who could ease some of the pressure City Hall is facing as it starts paying for a debt that has now reached over P6 billion.
SRP manager Nigel Paul Villarete said the National Government should realize that the issue on the ownership of the 295-hectare project is "not just a petty quarrel at the local level."
"They're playing politics. They're just trying to be extra careful on one hand and not giving much weight on the other hand. If they are doing their jobs, they will not hesitate to work overtime to have this document processed," Villarete said.
P500M deficit
Mayor Tomas Osmeña earlier said that Environment Secretary Michael Defensor had assured him Cebu City's application for special patent has already reached the President's table.
This development baffled DENR 7, but Villarete, for his part, said Malacañang has to authorize DENR Manila to issue the special patent.
Villarete said he will write a letter to all National Government agencies that will likely be affected if Cebu City can no longer pay back its loan with the Japan Bank for International Cooperation (JBIC).
"Their inaction on this matter will lead to an added fiscal deficit of P500 million, and this is no laughing matter," he added.
Among these agencies are the National Economic and Development Authority, Department of Finance, Department of Budget and Management and the Department of Foreign Affairs, which have a commitment to the bilateral agreement with the Japanese Government and the Cebu City Government.
The City will open its doors to all investors, which are interested to venture in the SRP and help use the reclaimed lands to meet the City Government's top three priorities-debt servicing, job creation and profit.
"We are not interested in selling more than six hectares a year. Our top priority is not profit. Our number one priority is 'Don't go bankrupt'," Osmeña said.
New jobs
The mayor also said he "stands corrected" when Aboitiz Land denied they will invest in the SRP.
Osmeña said Wednesday that Aboitiz initially presented a proposal of using 100 hectares for 12 years, but he rejected it.
He said, though, that SM City is interested to invest in the SRP. He is open to a proposal as long as it will not put up malls that would compete with existing establishments.
"We want to create new jobs, additional jobs for the economy. But if SM offers to pay our debt and if we are already pushed to the wall, that depends," he added.
The Cebu City Government already secured a presidential proclamation declaring the SRP an economic zone.
But Reyes of the DENR said the proclamation issued by President Arroyo last Jan. 20 is separate from the special patent.
A DENR 7 official, who asked not to be named, said the regional office did not receive Cebu City's application for special patent.
Opposition
Talisay City's application for title over a portion of the SRP, though, was filed with the DENR 7.
The source said it is possible that Cebu City filed its application directly with the Bureau of Lands in Manila.
The source added that before a special patent can be issued for the SRP, the opposition from Talisay City has to be resolved.
"For how can the special patent be issued?" the source said.
Representative Eduardo Gullas, who was then Talisay mayor, had said that 53.44 hectares of the reclaimed land have encroached into the city's territory.
While Cebu City Hall is yet to earn from the SRP, it has been forced to use its general funds to pay the loan from JBIC.
The loan for the SRP earns interest of about P1 million a day.
By September this year, Cebu City will have to pay more than P300 million when it starts paying for the principal, plus the interest.
(February 24, 2005 issue)
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