CPA agrees to pay city gov’t P1.1M per month for lease

CEBU, Philippines - The Cebu Port Authority agreed to lease a city-owned lot at the North Reclamation Area for a bigger amount, as Cebu City Mayor Michael Rama stipulated.

From the P50 per square meter they earlier requested, CPA general manager Edmund Tan told Rama that they are willing to pay double with their own terms and conditions, just to decongest the increasing traffic at the port.

Rama earlier agreed for CPA to lease the 1.1-hectare Block 27-A lot, but only if it would pay a monthly rent of P100 per square meter or P1,100,000 per month instead of the proposed P50.

In a letter to Rama dated March 24, Tan attached the contract of lease, anticipating the mayor’s consideration.

The letter was furnished to the City Council, which referred the same to the City Legal Office and Committee on Laws during its regular session last Wednesday.

Among others, CPA wants the term of lease to be effective for at least five years and that there shall be no increase in the rental for the whole duration.

CPA further requested that the rental be inclusive of the 12 percent value-added tax (VAT) or any other taxes.

CPA is renting the lot “not for propriety purposes but for the public purpose of decongesting the port,” among others, said Tan, so the city shall exempt or not impose on CPA any form of fees when it operates in the leased area.

Part of CPA’s condition too is for the city government to clear the area of all idle vehicles and other items within 10 days to pave the way for CPA to improve it for its purposes. The area is currently utilized as impounding area of City Traffic Operations Management.

“The City shall assist the Authority (CPA) in ensuring the smooth flow of traffic of cargo trucks and other vehicles to and from the port,” another condition of CPA.

City administrator Lucelle Mercado said they have not yet received CPA’s letter.

 Tan said that by renting out the area to CPA, the city can help in the effort to decongest the Cebu port, which has been bypassed by some vessels due to the lack of port space.

The CPA general manager added that they have been receiving complaints from port stakeholders, shipping lines, cargo handlers, and businessmen about the port congestion that seriously affects their businesses. — (FREEMAN)