CEBU, Philippines — The Cebu City government has introduced the proposed “Supplement” to the Joint Venture Agreement (JVA) it entered into with Megawide Construction Corp. for the redevelopment of the Carbon Public Market.
To recall, Mayor Michael Rama pushed for a curative measure when he was still the vice mayor to clear some points up in the JVA.
During City Hall’s Panaghisgot on Wednesday, March 23, Atty. Collin Rosell, Legal Consultant to the Mayor, explained the provisions of the proposed Supplement, which will still undergo deliberation in the City Council.
“Under Section 15.3 of the JVA and Section 7(3) in relation to Section 7(1) of City Ordinance 2154, the Parties can mutually agree to make enhancements on stipulations in the JVA that are aligned with the intention of the Parties,” the Supplement reads.
Section IV, which is about the project phasing, states that except as otherwise provided in the JVA, the Carbon Redevelopment Project must be continuously implemented by the private sector proponent (PSP) from the time of delivery of peaceful and exclusive use and possession of the pertinent parcels of the project site until the total completion of the project and its components.
It added that the conditions provided for the development of phase 2 under paragraph 2.5 (Project Phasing) of the previously entered JVA are hereby “supplanted and no longer applicable”, subject to the parties' compliance with applicable laws, ordinances, rules and regulations.
As provided under Section 2.5 of the agreement, PSP or Megawide shall undertake the development of phase 2, provided that certain conditions are met such as the total occupancy of all developments of phase 1 by lessees is at 98 percent determined by the PSP; there are at least 75 percent confirmed lessees for developments, evidenced by earnest money or deposit actually received, among others.
Rosell said this may take some time if such conditions will be followed.
“Ikaduha, klaro man na, capable kaayo ang Megawide base sa ilang qualification, base sa ilang mga projects, capable man na sila nga mopadayon diretso. Nganong tagi-tagihon man?” Rosell said.
Another provision under the proposed Supplement provides that in the prosecution of the redevelopment project, utmost effort must be observed to ensure the development and preservation of the Freedom Park at its original site and destination being a vital part of Cebuano Culture and Heritage.
Section VI states that there shall be no displacement of all duly registered vendors with the Market Authority, adding that utmost transparency and accountability must be observed in the selection, awarding, and assignment of beneficiaries, stalls, and spaces of the public market.
It also states that the parties shall devise a comprehensive plan in protecting and respecting the concerns of the actual occupants of Sitio Bato.
“In consonance therewith, the development of Sitio Bato shall be the last phase of the redevelopment Project. Further, Parties shall observe all legal and necessary steps in addressing the needs and concerns of the project affected occupants,” a portion of Section 6 reads.
Meanwhile, as requested by the city, both parties undertake to agree on the increase of Megawide’s investment commitment of up to P8 billion, subject to the parties' compliance with the applicable laws, ordinances, rules and regulations.
Under the original JVA, the investment of Megawide in the project is estimated at P5.5 billion.
In addition, the city shall receive no less than P50 million annually, subject to 10 percent escalation starting and effective on the eleventh year and every five (5) years thereafter provided that payment of the first annual payment shall be made on the date of signing of the supplemental JVA.
Section 12.2 of the JVA shall be supplemented to read as: “12.2 NO JOINT RESPONSIBILITY: “The City shall not be liable for any loss or damage caused by the negligent or intentional act or omission of the PSP in relation to this JVA and the performance of its obligations in this JVA, whether in whole or in part.” — JMO (FREEMAN)