Capitol, City back FLI on P5-B project-A A +A
Thursday, July 10, 2014
GOV. Hilario Davide III and Cebu City Mayor Michael Rama will help Filinvest Land Inc. in completing its P5-billion BPO complex in Barangay Apas, Cebu City.
The construction of the complex has been delayed for more than a year allegedly because of the refusal of the Ayala Group to allow Filinvest’s heavy equipment to pass through Cebu IT Park to the construction site.
The Provincial Capitol has been incurring losses due to the delay. It is expected to get a share from the revenues of the complex, once it gets operational, as it has a joint venture agreement with Filinvest.
Davide said the problem lies with Ayala’s alleged refusal to give access to the heavy equipment that would pass through W. Yonson St.
The first tower of the four-tower complex was initially scheduled for turnover and operation before the May 2013 elections. But until now, none of the towers are completed.
The project site of Filinvest BPO (business processing outsource) complex is located outside the IT Park, which is a flagship project of the Cebu Property Ventures and Development Corp. (CPVDC), but the W. Yonson St. is the only wider access toward the site.
Davide said the street is a public road, according to the documents from CPVDC.
The governor said the road has been declared public a long time ago through a resolution by the Cebu City Council.
After Rama’s State of the City Address last July 2, Davide said Filinvest chairman Andrew Gotianun sought the assistance of the mayor about his concern on the access road on W. Yonson St.
“I asked them (Filinvest) to give me some documents to substantiate our assertion that it is a public road and Rama offered to talk to Ayala,” said Davide.
Capitol has a joint venture agreement with Filinvest for the construction of the BPO complex on a 1.2-hectare Province-owned lot in Barangay Apas.
According to the memorandum of agreement between former governor Gwendolyn Garcia and Filinvest, the company would pay Capitol P614,500 as rent per month for the 12,290-square-meter area, with a rate of P50 per square meter.
The agreement also provides that Filinvest shall pay Cebu Province a two percent share every month of its gross revenue, or an equivalent of P500,000, whichever is higher.
Davide said Capitol has been receiving P500,000 monthly from Filinvest since May last year.
The concern of Filinvest involving the problem of access road has been reported to Provincial Administrator Mark Tolentino as early as July last year.
Tolentino at that time waited for the letter request of Engr. Peter Madeira, Filinvest project management consultant, to CPVDC seeking for a reconsider on its refusal to allow access to the Filinvest heavy equipment.
For his part, Madeira said he was just waiting for FLI’s letter, which will be his basis in asking for Capitol’s help.
Published in the Sun.Star Cebu newspaper on July 11, 2014.