Capitol restores compliance options for recla proponents

CEBU, Philippines — Developers undertaking reclamation projects in Cebu may now choose from three ways to comply with the provincial government's mandatory 10-percent entitlement after the Capitol restored flexible compliance options under its amended reclamation ordinance.

The amendment, embodied in Provincial Ordinance No. 2025-18, allows reclamation proponents to either transfer 10 percent of the usable reclaimed land to the province, pay its equivalent value in cash based on the property's current appraised or market value, whichever is higher, or provide another property of equal value through a lot swap.

The measure restores compliance options that had been removed under previous amendments to the ordinance, which had required developers to physically transfer a portion of the reclaimed land to the provincial government.

Provincial Administrator Atty. Ace Durano said the earlier requirement proved difficult for many reclamation proponents because carving out a physical 10-percent portion often disrupted the overall design and development plan of their projects.

"Before aning amendment, ang kaning 10 percent has to be a physical portion of the reclamation," Durano told reporters.

"For certain developments, ang 10 percent nga ihatag sa provincial government is not practical to them kay maguba ang ilang plano sa entire development," he added.

According to Durano, the ordinance was amended to once again give proponents flexibility in deciding how they will satisfy the province's entitlement.

"The ordinance was amended last year nga kanang 10 percent, pwede nga ang proponent tulo iyang option," he said.

Durano disclosed that several companies with completed reclamation projects had deferred complying with the province's share while waiting for the ordinance to be amended.

"Actually, wa pa gyud to sila ni-comply sa 10 percent tungod kay naghuwat sila nga ma-amend ang ordinance," he said.

He noted that many investors had found the previous requirement burdensome, discouraging some companies from pursuing reclamation projects in Cebu.

"Daghan baya ning urong sa ilang proposal nga mo-reclaim tungod ato nga requirement nga mohatag sila'g 10 percent," Durano said.

The provincial government expects most proponents to choose the monetary payment option instead of surrendering portions of reclaimed land.

"In fact, katong nalista, these are already done reclamation. Most of them wants to pay in cash," Durano said.

He said the option is likewise advantageous for the Capitol because it will generate substantial income that can be used for provincial programs and services.

"Favorable to us sad kay maka-raise og revenues," he said.

Durano added that the province is looking at collecting "hundreds of millions" of pesos should reclamation proponents opt to settle their obligations through cash payments.

"We are looking at raising hundreds of millions sa option nga ilang gipili nga cash value lang ilang ibayad. Wa pa labot ang RPT ana," he said, referring to real property taxes.

During the inaugural meeting of the Cebu Provincial Reclamation Authority (CPRA) on June 25, members were briefed on the amendments introduced by Provincial Ordinance No. 2025-18, which was unanimously approved by the Provincial Board and signed by Governor Pamela Baricuatro on January 6.

The ordinance retains the provincial government's entitlement to at least 10 percent of the usable reclaimed land—or its equivalent value—for all reclamation projects undertaken under the province's authority, regardless of whether the projects are completed or ongoing.

Aside from restoring compliance options, the CPRA also approved a resolution authorizing the Provincial Investment and Promotions Office to formally require reclamation proponents to state in writing which compliance option they intend to avail themselves of.

Provincial Assessor Michelle Languido, meanwhile, said proponents choosing the cash payment option will have to pay based on the property's prevailing appraised or market value at the time payment is made, rather than its value when the reclamation project was completed.

Durano also emphasized the importance of securing tax declarations for reclaimed properties, saying these serve as proof of possession and an initial requirement toward eventually obtaining land titles.

"Tax declaration is a proof of possession. Murag naa kay ikapakita nga imoha ni. That is also a first step aron naay title ang yuta nga gi-reclaim," he said.

Among the reclamation projects covered by the ordinance are those undertaken by Tsuneishi Heavy Industries in Balamban, Austal Philippines, Global Business Power Corp., Carmen Copper Corp., Atlas Fertilizer Corp., Cebu South Harbor and Container Terminal Corp., Meridian 123 Corp., Solid Earth Development Corp., Mabuhay Filcement Inc., and Dynacast Shipbuilding and Repairs Inc., all of which are entitled to the province's corresponding 10-percent share under the ordinance. — (FREEMAN)