P135-M ferry terminal project in Iloilo City questioned anew

ILOILO CITY—A controversial P135-million ferry terminal project in this city is again being questioned for allegedly violating a joint venture agreement with the city government.

In a resolution adopted on Tuesday, the city council called on Mayor Jed Patrick Mabilog to issue a cease and desist order against DoubleDragon Properties Corp. and its subsidiary, CityMall Commercial Centers Inc.

Councilor Plaridel Nava, who authored the resolution, said DoubleDragon violated the joint venture agreement with the city government by constructing a commercial mall and gasoline station, aside from the terminal.

“The two structures are not covered by the agreement and we cannot allow these because these violate our zoning ordinance,” he told the Inquirer.

DoubleDragon denied the charge. “The company has always been abiding with the terms of reference of the joint venture agreement,” the head of its legal department, Joselito L. Barrera Jr., said in an e-mailed statement.

DoubleDragon is a joint venture between Injap Investments Inc., headed by Edgar Sia II, founder of Mang Inasal food chain, and Honeystar Holdings Corp., headed by Tony Tan Caktiong, founder and chair of Jollibee Foods Corp.

“It is our mandate to design, develop, construct, and operate a ferry terminal and commercial complex as clearly stipulated in the agreement,” he said.

The Guimaras-Iloilo Ferry Terminal (GIFT) will rise on a 1.3-hectare government land near the port under a 25-year joint venture deal. The project seeks to improve passenger and cargo facilities, and services for commuters and tourists traveling between Iloilo and Guimaras.

DoubleDragon will finance, construct and operate the terminal complex for travelers going to and from Iloilo and Guimaras. Under the agreement, the developer has exclusive rights to collect terminal, berthing and cargo fees, as well as sublease or rent out commercial spaces within the complex.

It will turn over the terminal and complex to the city government after the expiration of the agreement.

Barrera said DoubleDragon “has always … good intentions in bringing into the city a world-class ferry terminal project with commercial complex that every Iloilo and Guimaras resident can be proud of.”

Nava said he was questioning the construction of City Mall, which covers an area covering 3,400 square meters, leaving only about 510 sq m for the terminal.

He said a gasoline station could not be constructed in the complex because this would be against the zoning ordinance.

“We cannot issue permits for these because that would be illegal,” Nava said.

But Barrera said the commercial complex provision “has always been present and part of the agreed development in the project and is not a surprise as presented by some.”

The project earlier drew criticisms for terms purportedly advantageous to DoubleDragon.

DoubleDragon has insisted that the project is advantageous to the city, including business taxes and expected revenues. Under the agreement, the city government will receive a share of the earnings, including 1-5 percent of gross collection of terminal and berthing fees.

The company, however, will get from 95 to 99 percent of gross revenue.

“The city government will receive its income share from the revenues of both the ferry terminal and the rentals from the commercial complex, which, for the entire duration of the joint venture agreement, are expected to be substantial and may even exceed the land value of the property,” Barrera said.