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Capitol to appeal city’s SRP ruling

By Doris C. Bongcac, Marian Z. Codilla
Cebu Daily News
First Posted 12:46:00 12/24/2008

Filed Under: Politics, Real Estate, Government, Local authorities

CEBU CITY, Philippines - The Cebu Provincial government is not giving up on its interest to also develop a portion of the South Road Properties (SRP).

Rory Jon Sepulveda, Capitol consultant on information and revenue generation, said yesterday the Capitol will file a motion for reconsideration to the Cebu City joint venture (JV) selection committee findings, which declared the Capitol illegible to bid to Filinvest Land Inc. unsolicited proposal to develop 80 hectares in the South Road Properties.

?We will continue to avail of whatever is the administrative remedy,? he said.

But Cebu City Administrator Francisco Fernandez said that the Capitol can study other options such as asking the city government to amend the city's joint venture ordinance to accommodate Capitol to challenge the unsolicited proposal of the Filinvest.

Fernandez cited Section 33 of the Local government code of 1991, which states that local government units can consolidate their efforts, services, and resources for purposes that will be beneficial to both of them

Fernandez, however, said the city is not bent on amending City Ordinance No. 2154, which prescribes Guidelines and Procedures for Entering Into Joint Venture Agreement with Private Entities Consistent with the NEDA Guidelines on Joint Venture Agreement.

?We cannot change the rules of the game when the game has already started,? Fernandez said.

The JVSC declared on Tuesday the Cebu provincial government ineligible to challenge the Filinvest proposal to develop a portion of SRP because it is a government entity.

Fernandez said that if the provincial government is really serious in challenging the joint venture proposal of Filinvest, then Capitol officials have to follow certain procedures such as holding a public hearing.

?The Provincial government has to meet with the people of the province and they will have a public hearing so the people of the province will be consulted whether they would like to have a JV with the city (of Cebu),? Fernandez said.

?If both the city and the province will agree to develop the SRP then why not. But with the present situation where the city and the province is not in good terms, it?s just like a boyfriend and girlfriend who are not on good terms and would they marry each other then. JV is like a marriage. If both parties are not on good terms then why would they marry?,? Fernandez asked in Cebuano.

The city government, however, would not amend the ordinance.

He said that the ordinance was made even before the province indicated interest in the SRP.

The city has already sent a letter yesterday to the Capitol addressed to the Governor Gwendolyn Garcia stating the grounds for their decision of declaring them not eligible to challenge the Filinvest proposal.

?The eligible entities do not include local government units. The documents based on its face value, also failed to show that the financial statement are audited and that the Province of Cebu has the minimum amount required equity. Based on the foregoing premises, the JVSC, unanimously found the Province of Cebu ineligible,? the letter signed by the JVSC chairman Fernandez said.

He added that the JVSC is formed under the JV ordinance and it is clear on the ordinance on who may participate. Although a consortium is acceptable, the Province never claimed they have a consortium with a private sector from the start they expressed interest.

Fernandez said that the Capitol can file an appeal to Acting City Mayor Michael Rama within seven calendar days.

But Fernandez said given the holiday season, they might not strictly enforce the deadline and might extend it until the first few days of January next year.

Consultant Sepulveda said the Capitol would file the motion for reconsideration (MR) of the JV committee ruling next year because they have not yet received the committee findings.

The provincial Economic Enterprise Council (EEC) held a special session on Monday to discuss the Capitol?s SRP plans.

The EEC tasked Provincial legal officer Marino Martinquilla and planning officer Adolf Quiros to draft the MR.

Sepulveda said the provincial government was not really disqualified from the joint venture bidding.

Only, the joint venture committee has stated that the ordinance only has jurisdiction on private entities.

Sepulveda said that city hall officials were correct in saying that the NEDA guidelines only cater to private sector bids in government development projects.

However, he said it was also important to consider that aside from Filinvest, no other private entities have expressed their interest to bid.

The law clearly provides that ?to ensure fairness and competitiveness everything must go through public bidding,? Sepulveda said.

?How could you ensure the people of Cebu that the Filinvest terms are the best possible terms (if you do not allow a challenger)?? he asked. /With Correspondent Jully V. Cuizon



Copyright 2012 Cebu Daily News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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