THE Cebu City Government will receive P5 million from Megawide Construction Corp. through its subsidiary Cebu2World Development Inc. (C2W) before the end of 2021 as initial payment for the development of the old Carbon Public Market.
The P5 million represents the first year of the annual graduated payment C2W will give to City Hall even if the development project is not yet operational.
Under the joint venture agreement (JVA) entered into between the Cebu City Government and C2W in October 2020, the City will receive annual graduated payments from C2W.
Louie Ferrer, executive director for infrastructure of Megawide, said the Cebu2World Inc. (C2W) will begin construction of Unit 2 which will serve as interim market for the 570 legitimate stall holders of the Warwick Barracks and Freedom Park.
Ferrer said that vendors, even ambulant ones, need not worry about losing their livelihood as this has been considered by Cebu City Mayor Edgardo Labella.
Vendors who are on the Market Operation Division list, led by Irvin Cabales, will be prioritized in securing a spot in the new Carbon market.
One of C2W’s targets before year end is to finish the Puso Village which will be occupied by ambulant vendors, who will be divided into three shifts.
The Puso Village, together with the Sto. Niño Park and Chapel and the parking and transportation hub, will comprise Phase 1.
The City will receive another P14 million in 2022; P34 million in 2023; P48 million in 2024, and P50 million thereafter, which will complete the annual guarantee payment (AGP) before the operation of the new Carbon market is
complete. The AGP will be escalated 10 percent every five years, as the JVA stated.
The AGP worth P50 million which the City will receive will increase by 10 percent every five years. This does not include the estimated P20 million revenue from real property taxes, business tax and other income.
However, Ferrer said everything will depend on the Market Code, which serves as the market’s bible, and is awaiting amendment in 2022.
Based on the Market Code, the fee per square meter is one of the lowest among all local government units when it comes to this type of facility.
For the families in Sitio Bato, Brgy. Ermita, as well as the other residents who will be affected by the P5.5 billion development in Carbon, Ferrer said they will not be uprooted from their homes if they don’t have anywhere else to stay.
The C2W will follow the standard process and acquire the permits needed for it to start construction of the new Carbon market. (PAC / CCP)