CPA may lease CH lot but under city’s terms

CEBU, Philippines - The Cebu City government is willing to lease out a property at the North Reclamation Area to the Cebu Ports Authority to serve as container yard provided that the city’s term should be followed in the lease contract.

Mayor Michael Rama said the CPA can lease a 1.1-hectare property at Block 27-A in the North Reclamation Area provided that the P100 per square meter rental it offered should not include the 12 percent Value Added Tax.

Rama also did not agree to the five-year lease contract proposed by CPA. The mayor said the contract should be within one year but renewable.

“…steadfast of one year renewable. Let’s not put additional terms and conditions. One hundred pesos  per square meter exclusive only for the lot and need not have to be deducted for whatever taxes. Let other expenses be handled by them,” Rama said.

 â€œDili ko gusto five years (lease) and inclusive sa VAT. Don’t ask any condition ang importante pay us one hundred pesos per square meter. That’s it,” the mayor added.

 CPA general manager Edmund Tan said the city must exempt them from tax charges considering that the area to be leased “is not for propriety purposes but for the public purpose of decongesting the port, increase efficiency in port operations, and spur maritime trade and commerce in Cebu.”

 Under the CPA proposal, it required the city to assist and ensure smooth flow of traffic of cargo trucks and other vehicles; no increase of rental for five years; the city needs to clear the impounding area of the City Integrated Traffic Operations Management within 10-days for CPA to improve the area; among others.  (FREEMAN)