THE first in a series of adhoc committee hearings on the joint venture for the Kawit Island property at the South Road Properties (SRP) kicked yesterday with questions and assurances on the proponent’s capacity to pursue the project.
Councilor Raymond Alvin Garcia voiced concerns over reports that the developer, Universal Hotels and Resorts Inc. (UHRI), had only been formed last year and the Kawit venture will be their first major project.
UHRI is the development arm of JG Summit Inc. which owns and operates Cebu Pacific, Robinsons Land, Summit Hotels and the Universal Robina Corp. among other companies.
While acknowledging the financial prowess of the Gokongwei-led JG Summit Inc., Garcia said the Cebu City government may be placed in a difficult position if the P18-billion project fails.
“If the project goes south, the city government will have limited means to pursue the company and may even be left with an empty bag,” he said.
Garcia, along with Councilors Sisinio Andales, Margarita Osmeña, Jose Daluz III, and Renato Osmeña Jr., comprise the Cebu City Council ad hoc committee that held the hearing to study the joint venture agreement (JVA) between the City Hall and UHRI.
Also present at yesterday’s hearing were Cebu City Mayor Tomas Osmeña and his executive assistant Francisco ‘Bimbo’ Fernandez, his consultant for economic and business development Joel Yu and UHRI representative Mybelle Gobio.
Garcia asked the UHRI to furnish the ad hoc committee with documents to prove that they have the financial capacity to carry out the P18-billion project on Kawit.
UHRI’s unsolicited proposal aims to build hotels, a convention center, a casino, mall, park and theater.
Under the proposed deal, the city government will earn a 10 percent share of the profits earned during its 50-year duration.
In response, Gobio told the committee that UHRI was formed for the Kawit development project.
“It is intended for the Kawit development so it does not have any track record yet,” Gobio said.
Osmeña said UHRI and its mother-company, JG Summit Inc., is not a “fly-by-night” company engaged in big-ticket business ventures.
“It’s not like we don’t know them. They named their airlines after Cebu and they ferry passengers anywhere. That’s absolute proof on how much money they make. Their reputation is impeccable,” Osmeña said.