Challenge To Bid For SRP: JVSC throws out offer of Province

CEBU - The Joint Venture Selection Committee has denied the appeal of the Cebu Provincial Government to accept it as a qualified challenger to the unsolicited bid made by Filinvest Land Inc. to develop a portion of the South Road Properties.

JVSC chairman Francisco Fernandez said they will recommend to Acting Cebu City Mayor Michael Rama to declare Cebu Province ineligible to submit a competitive challenge.

 “When the recommendation is approved by the Mayor, we hope that Capitol will now put the issue to rest since a day of delay is costing us at least a million pesos in interest,” Fernandez said.

The Capitol, during the deliberation by JVSC, still did not meet the three major qualifications to bid – the legal capacity plus the technical and financial requirements.

Despite Capitol’s assertion in its letter of appeal that it has “corporate powers” as a local government, JVSC members ruled that this does not make them a private entity, which is a requirement under the ordinance that lays down the rules for the joint venture.

“They cited their interpretation of the Local Government Code which is for local government. If they have corporate powers, it does not follow that they can be considered as a private sector,” according to Juan Saul Montecillo, JVSC member representing the Office of the Mayor.

JVSC Member and City Planning and Development Officer Nigel Paul Villarete also said there is no statement or assertion in their letter of appeal that Capitol is a private entity.

Secondly the Capitol in its appeal, furnished JVSC with Commission on Audit’s (COA) Certification that the financial statements for the last three years, they submitted were duly audited.

But this, according to JVSC member Renee Empaces, only forms part of the 14 financial requirements.

“If you will look over the supporting documents submitted by FLI to assert their financial capability, these are even of international standards,” Empaces said.

JVSC members also said that the province failed to meet the technical requirement in terms of a track record showing a completed real estate project costing at least 70 percent of the P25 billion project cost of FLI’S proposal.

The province showed the stalled Ciudad project which did not even mention its project cost.

In a separate interview with The Freeman, Capitol consultant on information and revenue generation Rory Jon Sepulveda lambasted the JVSC for casting allusion to the province that they were the ones causing liabilities to the city.

 “It is ironic and sad that the province is just trying to afford the city a clear opportunity to achieve affordable and best possible price. Only we are being excluded, we are being shut down and worst they are casting allusion that we are the one causing them enormous liabilities,” Sepulveda said.

The capitol consultant asked the city not to point their fingers to the province as the reason why they have huge liabilities.

What the province was doing, according to Sepulveda was helping the city by offering them the best offer they give.

“Kung naa sila’y enormous liabilities, wala intawon mi labot niana uy. Unsa man intawon sala sa probinsya. The least we can do is to offer them the best offer,” Sepulveda added as he questioned the real intention and motives for their exclusion.

The JVSC will finalize the letter of recommendation which will be acted upon by Rama on Monday.

The decision of the local chief executive, Fernandez said, is final and executory unless Capitol seeks further remedies.

 The next step for JVSC is now to award the project to FLI considering that no other entity was qualified and submitted its intention to bid 30 days after the last publication date last December 23.

 Fernandez said the Capitol can make a Joint Venture with the City of Cebu, but no longer under the JV ordinance but under the provisions of JV in the LGC.

 “There is still the remaining 250 hectares of the SRP then there is 93-1, or even Ciudad,” Fernandez said.

 A JV on local government units can materialize after a public hearing done in both LGUs.

In the 50.6 hectares, FLI will be constructing a minimum of 875,000 square meters of building spaces in the Central Business District.

FLI has committed to compensate the City in a period over 20 years a minimum of P1.5 billion payable in cash for the next three years and 10 percent of the gross revenues of built up units or a predetermined minimum guaranteed return.

Once the city awards the project to FLI on February 15, it will pay an initial amount of P330 million, enough to cover the first quarter payment of the loan on February 19, which is more or less of the same amount.—/NLQ   (THE FREEMAN)