THE Cebu Provincial Economic Enterprise Council has awarded Filinvest Land Inc. (FLI) Original Proponent Status (OPS) to initiate a project on a 1.4-hectare lot owned by the Capitol in Barangay Apas, Cebu City, the Capitol announced Wednesday, Dec. 13, 2023.
FLI’s unsolicited proposal involves the construction of high-end residential and commercial towers on Capitol’s property at a cost of P16 billion, Capitol’s media arm, Sugbo News, reported.
The project will be developed under a build-transfer-operate (BTO) scheme where FLI will build the infrastructure, transfer ownership of the complex to the provincial government upon completion of the construction, and then receive from Capitol the right to operate it for a stipulated number of years so it can recover its investments.
The Capitol would also have revenue-sharing agreements with FLI, as well as rent payment options.
However, FLI cannot yet proceed with the project since its unsolicited proposal will still be subjected to a Swiss challenge to enable the government to draw other investors to submit competing bids.
With its OPS, Filinvest would have the right to match the offers of challengers so it could secure the project.
If FLI wins the bid, this would not be the first time that Capitol and FLI would team up for a BTO arrangement since the two parties already have a standing BTO agreement involving the four-tower BPO Complex called Capitol Filinvest Cyberzone built on Capitol property at the Cebu IT Park. Two of the four towers are already operational.
Through BTO and other arrangements with the private sector, the Cebu Provincial Government develops its properties without spending for them.
Sugbo News said the Cebu Provincial Government is the biggest landowner in Cebu City.