CEBU City Hall will ask a developer to fast-track the release of P600 million as its share of the proceeds of the South Road Properties (SRP) lots.
Emma Villarete, assistant city treasurer for administration, said City Treasurer Ofelia Oliva will write Filinvest to ask for the release of the city’s P600-million share during the first quarter of the year.
Cebu City Mayor Michael Rama said in a separate interview that the P600-million joint venture share “is money that I’ve been asking for.”
The amount is part of the P1.275 billion in SRP sales proceeds.
Half of the amount or P675 million is payment for the land that Filinvest Land Inc. (FLI) and SM Prime Holdings bought.
The remaining P600 million is the city’s share from its joint venture with Filinvest.
The company is developing condominium units in a portion of the SRP.
“The amount is the city’s share in their preselling of condominium units,” said Villarete during a press briefing held at the mayor’s office conference room.
The P600 million is a fresh source of funding that Mayor Rama intends to use to fund projects that were dropped from the city’s annual budget, Villarete said.
Rama proposed an executive budget of P11.8 billion, but the council only authorized a P5.2-billion budget.
Rama said available funds would make his administration implement more drainage projects and work on the capability enhancement of the police and the fire department.
He said the funds will also go to improvements in the city’s traffic system, disaster response programs and to install security cameras to help keep the city’s peace and order.
Villarete said the city government also released P270 million yesterday as payment for its amortization for the SRP.
She told reporters that the release represents the city’s first-quarter payment for its SRP debt with the Japan Bank for International Cooperation (JBIC).
Of the cash receivables, Villarete said only P675 million has been identified as fund source for the city’s P5.2-billion annual budget. Chief of Reporters Doris C. Bongcac