Iloilo LGU bullish on Megaworld commercial complex project

ILOILO CITY — Local government officials here expressed optimism that the decision of real estate developer Megaworld Corp. to pour in P1.5 billion worth of investments in the city would boost their economy through  more jobs and business opportunities.

Megaworld will convert the 54-hectare old airport in Mandurriao district, which the government privatized following the construction of the P6.2-billion New Iloilo Airport at Cabatuan town, into a mixed-use commercial complex.

The company has shelled out P1.2 billion to purchase the airport and will spend another P1.5 billion to develop the property, Kingson Sian, executive director and senior vice president of Megaworld, said during yesterday’s turnover ceremonies.

Sian said they will turn the old Iloilo airport into a “live-work-play-learn community.”

Megaworld will put up business process outsourcing (BPO) buildings, condominium units, a hotel, a convention center, a themed commercial/retail center, a recreation area, and a skills training center, he said.

Sian pointed out several factors indicating an upbeat real estate market: the demand by mid-income earners for houses, low mortgage interest rates, the overseas Filipino workers’ market and government spending on infrastructure.

Iloilo City Mayor Jerry Trenas said Megaworld’s investments would mean additional jobs for city residents.

“The graduates of our universities and colleges would no longer have to go to Metro Manila or go abroad just to find a job.”

“It’s not so much about the taxes that would accrue to the city, but about employment opportunities,” he added.

However, the mayor expressed concern a looming power glut in the city since the Megaworld project would need about 35 megawatts of power, something which independent power  producer Panay Power Corp. cannot supply at present.

City officials are currently evaluating a proposal to build a coal-fired power plant to augment the city’s needs.

With the privatization of the old airport, the government was able to book P1.2 billion in revenues, Finance Secretary Margarito Teves said during the turnover ceremonies.