Stiff terms prompt bidders to ask for delay

WHAT’S the reason for the delay in the bidding proper for the three-hectare lot at the South Road Properties?

P300 million.

Veronica Morelos, chairperson of the Committee on Awards, said the 10 percent cash bond and the 50 percent downpayment are the reasons why potential developers are asking to move the bidding proper for the three-hectare South Road Properties.

Priced at P110,000 per square meter, the total value of the three hectare property is P3.3 billion and as part of the bidding process, potential bidders must bring a 10 percent cash bond amounting to P300 million.

Aside from that, the winning bidder must also give a 50 percent downpayment--P1.65 billion--when the Cebu City Government gives the Notice of Award.

Morales said these two provisions prompted potential bidders to ask for a postponement. She also said they will just wait for the decision of Mayor Tomas Osmeña and will relay it to the potential buyers.

On the other hand, members of the opposition are doubting if there are buyers lined up for the P3.3 billion three-hectare lot.

“We authorized him two years ago to sell the property at P110,000 per square meter. So kon kinsa man tong ganahan mopalit, palihog palit namo og bid documents ug apil sa bidding proper para mahalin na ang maong yuta because it adds development to our city,” Vice Mayor Labella said. “That’s their problem already (completing the sale). If it’s true that there are interested buyers, that’s a welcome development for our beloved city,” said Labella, who is running against Osmeña in next month’s polls.

On the other hand, opposition councilors Raymond Alvin Garcia and Joel Garganera think the delay in the bidding proper for the third time is due to the failure of finding bidders.

“Asa naman ang inyong buyer intawon kay naghinamhinam na kami uban sa mga Sugbuanon nga mahalin ang maong yuta kay it could generate funds and employment to our City and more services that we could offer to our residents,” said Garganera. “Sige lang ning pagarpar ug paghambog atong kasamtangang mayor kay mahalin kuno og P110,000 per square meter ang yuta, apan asa naman? Katulo naman ni gi-postpone. Mahimo diay na nga naa man kahay mga bidders?”

Osmeña accused then Mayor Michael Rama of undervaluing the SRP by selling 46 hectares at P38,000 per square meter. However, Labella said the selling price was double the floor price set by the Commission on Audit, which was P19,000 per square meter. (PAC OF SuperBalita Cebu)


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