CEBU, Philippines - The Cebu Provincial Capitol, represented by Gov. Hilario Davide III, yesterday signed the build-transfer-operate agreement with Fifth Avenue Development Corporation for Ciudad, a mixed-use development project.
Under the BTO agreement, Fifth Avenue will develop the province-owned two-hectare lot in Barangay Banilad, Cebu City.
The 19-page memorandum of agreement (MOA) also stipulates that the province hands over the 28,564-square-meter property to Fifth Avenue not later than three years since yesterday’s signing, within which the issue on informal settlers in the area has been resolved.
The first agreement was signed on September 11, 2006 during the time of Gov. Gwendolyn Garcia but its implementation was hindered by the absence of a Provincial Board resolution approving it.
Davide said he believes that this time, the project will push through as the PB has already passed a resolution for it.
“Wa naman tingali after the signing there. We really endeavored nga makurihian tong sayup. Naniguro g’yud ko nga ang amended version naa’y authority sa Provincial Board. Ang gi-authorize gud sa atong precedessor ang economic council, which is sayup,” he said in reference to Garcia.
Michael Dino, executive vice president of Fifth Avenue, said they are rushing to start the project “soon,” especially that it has been delayed for several years.
“Soon (we will start the construction). But we are rushing also because it’s been stalled for a long time. We are itching to start the project,” he told reporters.
He, however, said there will be “some changes” in the original plan, and that they need to do some replanning and recosting, as the earlier P1.8 billion budget was still for year 2006. He said he estimated the construction cost to be “over P2 billion.”
Fifth Avenue has 25 years to develop and use the said property. Within which, it shall pay the province a rent of P35.55 per square meter per month “with an escalation of 5 percent per year applicable on the sixth year of the lease and every year thereafter.”
The company will also pay the province .55 percent of its one percent gross sales every month. - (FREEMAN)