CEBU, Philippines – The Lapu-Lapu City government expects to earn P5 billion to P10 billion in revenues in the next few years, as the 400-hectare Mactan North Reclamation and Development Project (MNRDP) kicks off operations.
This early, the City government led by Mayor Arturo Radaza is working to get its Environment Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR), and notice to proceed from the Philippine Reclamation Authority (PRA).
In an interview with MNRDP project manager Michael Dignos, he said that the project is running on schedule and full development of the area will start immediately after the elections in 2010.
The project, which will cover four barangays of the city, namely; Ibo, Mactan, Buaya, and Punta Engaño is seen to bolster the economic strength of the city, as it will be positioned as the next financial district in the Philippines, second to Makati City.
As soon as the project will be implemented, Lapu-Lapu City will have its own International Port, Information Technology and tourism zones, retirement village, golf courses, among others.
Based on a feasibility study, Dignos said the reclamation project will contribute multi-billion-peso revenues estimated at P5 billion to P10 billion every year, depending on the contracts entered into by locators and developers of the property.
The MNRDP got the approval of the Office of the President in 2004, and was reiterated by the PRA last year.
“We are running on schedule,” Dignos said adding that full implementation of the project may start immediately after the election in May of 2010.
For its first year, MNRDP is expected to rake in a revenue contribution of P2 billion to P3 billion. The full utilization of the property however, will bring revenues to as much as P10 billion annually.
According to Dignos, there are already a lot of prospective and interested investors that expressed interest to locate at the area, but the government can not negotiate yet, as documentary processes are still on works.
For one, he said the Mactan Economic Zone (MEZ-1) has already expressed interest to put its expansion site at the area, among other investors like resorts, hotels, retirement village, golf courses, and other businesses.
The need for reclamation project in Lapu-Lapu is needed in order to sustain investors’ appetite to locate in the area, as it is considered as the tourism center of Cebu province.
Dignos said as soon as all documents will be completed the government will soon implement to start the project.
Attracting locators is not a problem, he said as even this early a lot of investors are already waiting and have proposed their plans of developments in the area.
Last Tuesday, the City government of Lapu-Lapu awarded its top 20 taxpayers in 2008, that include mostly multinational companies operating on the island such as Shangri-La’s Mactan Island Resort and Spa, Lear Automotive Services (Netherlands), Corporation, Hilton Cebu Resort & Spa, Mactan Electric Co., Inc. (MECO), Plantation Bay Holdings Corporation, among others.
Lapu-Lapu City gained new investments of P4.7 billion in 2008. More new investments are expected to pour in on the island especially as soon as the MNRDP is already operational.