Kawit project to settle city’s loan balance
If Kawit Island is developed for mixed use by Middle East investors, Cebu City may earn up to P5 billion or more than enough to clean up its foreign loan balance of P3.2 billion.
“If that happens, the city will get to keep the P500 million that it sets aside every year for loan repayment for the South Road Properties and use this for basic services,” said Roberto “Bu” Varquez, head of the SRP management office.
A Middle East-based investor earlier expressed interest to develop the entire 10-hectare Kawit Island and put up high-end apartments, restaurants, coffee shops and a marina for guests.
Damac has not yet submitted its development plans or expressed whether they want to acquire the lots through direct purchase, lease or a joint venture agreement.
Varquez said that having a Damac investment would “put us in the tourism map worldwide” and bring direct flights from the Middle East to Cebu.
“This is a major investment from the Middle East and they are serious with their intentions,” he said.
Selling the property would also mean having to remove the Sugbu building, a huge image of the Sto. Niño and the unfinished senior citizens building.
These would have to be relocated to the city hall block in the SRP, where the new Government Service Office (GSO) motorpool is located.
Cebu City Mayor Michael Rama said these temporary structures were placed there to attract investments.
But he said he is hopeful that Damac would find a way to “integrate” these structures in Kawit Island if the investors pursue their interest.
Varquez said Damac officials have asked the city government for technical details of Kawit Island and the SRP to prepare a development plan.
The Department of Tourism (DOT) central office referred Damac to Cebu City after a series of consultation on their plan to invest in a tourism project in the country.
Damac officials visited the city in March saying they wanted to invest in high-end apartments.
Varquez said the SRP may not be ideal for this because of the high cost of reclaimed land although high-rise buildings would be suitable.
“They liked the SRP because its a new community. SM Seaside Mall is there and so with Filinvest,” said Varquez.
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