P300B investment in SRP to generate P22B taxes for Cebu City

By: Delta Dyrecka Letigio January 29,2020 - 10:08 PM

CEBU CITY, Philippines — Cebu City expects that out of the P360 billion investment the SM-Ayala consortium will put into a 26-hectare lot at the South Road Properties (SRP), taxes worth P22 billion will be collected.

Mayor Edgardo Labella led the groundbreaking of the multibillion project at the SRP on Wednesday, January 29, 2020.

The mayor said that the investment is expected to contribute P22 billion to the City Government as payment for permits, taxes and other regulatory fees alone. Furthermore, the investment is also expected to generate two million jobs directly and indirectly as the property develops.

Of the two million jobs, 480,000 of these will come from business process outsourcing (BPO) companies that will rise in the area while the remaining number will come from indirect jobs such as those in hotels, residential and other business establishments set to rise in the property.

“It is one of the thrusts of our administration that we should decrease the poverty level in the City of Cebu. It is a sad reality that up until now, after so many years, our country including this city, is facing a very serious political and social imbalance. Too many have too little while too few have too much of the good things in life and I sincerely believe that with the two million jobs generated, it will improve the lives of our people,” said Labella.

In his speech during the groundbreaking ceremony, the mayor emphasized that everyone should be grateful to the people who supported the project, including the three previous opposition councilors, who supported the move.

In 2015, the City Government under the administration of former mayor Rama sold 45.2 hectares of the SRP lot at P16.7 billion to the consortium.

The multi-billion project will stand on a 26.3-hectare property, a part of the 45.2-hectare lot.

Mayor Labella, who was then vice mayor at that time, was the presiding officer in the City Council.

“We were actually outnumbered at that time. The opposition was the majority. But there were well-meaning members of the City Council who set aside partisan posturings because they believe in the project and I call them, the unsung heroes, aside of course, from the other members of the City Council,” the mayor said.

Even so, former mayor, Tomas Osmeña still has a pending case on the validity of the sale.

Recently Osmeña said that the investment will only come to woe as he has filed a petition for a preliminary injunction, currently being heard in court.

He argued the sale of the SRP lot was illegal as the council did not give Rama the authority to enter into the contract.

The City Legal Office (CLO) said the lower and appellate court has already junked a similar petition to that of Osmeña.

The CLO insists that there are no impediments to the development of the disputed lot at the SRP. /rcg

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TAGS: 2 million jobs, alleviate poverty, Cebu City, Mayor Edgardo Labella, multi-billion investment, no legal impediments, SM-Ayala Consortium, SRP

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