THE controversial wall separating the Filinvest Land Inc. or FLI-managed Cyberzone Cebu Tower from the Cebu Asiatown IT Park in Barangay Apas, Cebu City will soon be torn down.
Provincial Board (PB) Member Peter John Calderon said that the Cyberzone, a business process outsourcing complex, will soon operate with three access roads leading to the IT Park and Gov. Cuenco Ave.
“Once this agreement is signed in the next two weeks, Geonzon St. will be open to Filinvest,” said Calderon.
When the agreement is signed, Calderon said that the Capitol will also ask the Cebu Property Ventures and Development Corp. (CPVDC), which manages IT Park, to withdraw the case it filed against Cebu City and FLI for their plan to destroy the wall and open Geonzon St.
“After a series of discussions and detailed studies, we have reached an agreement with the Cebu Province for a reciprocal grant of access points for both our properties,” read a statement from Cebu Holdings Inc. (CHI) corporate communication and media relations manager Janette Japson.
CPVDC is a subsidiary of CHI, an affiliate of Ayala Land.
The PB approved two related resolutions yesterday, both authored by Calderon, authorizing Gov. Hilario Davide III to sign a memorandum of agreement with FLI and the other agreement with CPVDC.
Its agreement with CPVDC is “for the provision of pedestrian and vehicular access for ingress and egress to and from the property as well as to and from Cebu IT Park.”
“We expect to soon finalize this agreement, that will benefit not only the investors and companies in the Cebu IT Park and the Cebu Province properties, but the larger surrounding community as well,” read Japson's statement.
Cyberzone is a joint venture between Capitol and FLI. The former owns the land.
FLI wants to amend its agreement with Capitol, the former asking for a five-year extension of the 25-year contract to recoup expenses.
PB Member Thadeo Ouano asked for figures involved in the five-year extension but Calderon said that the details on how the Capitol will earn during that proposed extension are with the Provincial Treasurer's Office but he will furnish the board a copy of it.
“I want to know the figures to be sure that the Province will not be disadvantaged,” Ouano told Sun.Star Cebu after the regular session.
According to contract signed by then governor now. Rep. Gwendolyn Garcia (Cebu, 3rd district), FLI will pay the Province P614,500 as monthly rent for the 12,290 square-meter property, at the rate of P50 per square meter.
FLI will also pay the Province a two-percent share of its gross revenue or P500,000 every month, whichever is higher, once the private firm starts earning.
Capitol has been receiving P500,000 from Filinvest since May 2013, the project date completion and the formal start of the 25-year venture.
But FLI claimed that the completion was delayed because its heavy equipment and materials were not given access through Geonzon St., hence, the company incurred additional expenses.