Rama: I know what I’m doing with SRP

Cebu City Mayor Michael Rama said he’s in the best position to decide how to manage both the city’s finances and its centerpiece project, the South Road Properties (SRP).

Since the SRP was created to generate employment opportunities in the city, he doesn’t see anything wrong if his administration would sell more lots for profit and to fund City Hall’s operations.

“Are they now the mayor? Do they know what they are doing?” Rama said in reaction to opposition to his move to repeal the ordinance that requires City Council approval for SRP lot sales.

Former mayor Tomas Osmeña, former city administrator Nigel Paul Villarete and Joel Marie Yu of the Cebu Investment Promotions Center (CIPC) all said the ordinance protects the SRP from unauthorized transactions.

Cebu City still owes the Japanese government about P5 billion for its SRP debt which is payable until 2025.

It is scheduled to pay an amortization of P567.76 million this year.

Development project

The proposed sales of lot 8-B where the San Pedro Calungsod templete is located is also expected to raise P5.4 billion which will cover half of Rama’s 2014 budget proposal of P10.5 billion.

Villarete told the City Council during Wednesday’s public hearing that the SRP is “not a real estate project” but a development project funded by ODA (Official Development Assistance).

He said the National Economic Development Authority (Neda) and the Japanese government only authorized the disposal of lots to take care of the city’s loan amortization and to spur the city’s economic development.

Villarete warned the council against displeasing the Japanese government if they violate the terms of the loan agreement.

“We do not want a situation where the use of the SRP is for the internal revenue generation of City Hall,” he said.

Speculators

“I should not be listening to them,” said Rama who is bent on making new sales of SRP lots next year. Councilor Alvin Dizon called for an executive session on Dec. 18 so the council could be briefed on the provisions of the SRP loan contract.

Osmeña said while the city government needed money, the Rama administration has to be “intelligent” in selecting its buyers to avoid speculators.

He said he doesn’t want to the SRP to end up like the North Reclamation Area in Mandaue City which was sold to speculators and remained undeveloped up to this time.

Osmeña said if the Rama administration will be a little patient, they should wait until after the completion of the SM development project at the SRP in order to sell the lots.