All available lots can only be used for joint venture agreements (JVAs) between the City Government and future investors, Roberto “Bo” Varquez, head of the SRP Management Office (SRPMO), told SunStar Cebu on Monday, Feb. 6, 2023.
Varquez said Mayor Michael Rama issued a directive not to sell SRP lots anymore and only accept JVAs or leasing agreements depending on the proposed project.
He added that this setup is helpful to investors since they will provide a share or percentage to the City only once their business starts to generate revenues.
“This is the safest arrangement because once a business starts, the revenue is not that high. So in this manner, we are not giving much burden to the investors since we will be only asking for a percentage of their generated revenue,” Varquez said in Cebuano.
Varquez added that most terms under JVAs are to allow the investors to build their infrastructure on government-owned lots for a specified period while the City receives income through its share of the revenues.
The existing available land area can be further expanded once Pond A, which remains submerged in water, will be fully developed.
According to Varquez, Pond A has a total reclaimable area of 60 hectares.
In January 2022, the City Government and Expedition Construction Corp. signed a JVA for the filling of Pond A and the development of the former Inayawan landfill.
According to a report from the Public Information Office in August 2022, the City collected P18.02 billion from the sale of SRP lots from 2015 to 2019.
Varquez revealed that the biggest occupant in terms of land area bought in the SRP is SM Prime Holdings with its 30 hectares owned.
The property was bought in 2010 during the term of then mayor Tomas Osmeña at a total procurement cost of P2.7 billion.
Varquez said there is a JVA proposal from SM for the construction of an integrated terminal in SRP but he cannot reveal more details since the plan is still with the JVA selection committee.
The City Government has an existing JVA with Filinvest Land Inc., signed in 2010, for land covering 40 hectares.
Varquez further said that the ongoing construction of a roundabout in the SRP will still take another three years to complete.
The construction pace is dependent on the budget since it is being handled by the Department of Public Works and Highways, he added.
Package 2 of the Cebu Bus Rapid Transit will also include a route connecting the SRP to the Cebu South Bus Terminal on N. Bacalso Ave., which will happen in 2024, said Varquez.