Redeveloped Carbon to bring P70M in annual income to Cebu City
Artist Impression of a redeveloped Carbon Public Market | Photo courtesy of Megawide Construction Corporation
CEBU CITY, Philippines – The Carbon redevelopment project is expected to bring in an annual income of up to P70 million to Cebu City, according to its proponents.
Megawide Construction Corporation, in a press release issued on May 26, 2021, announced that its subsidiary Cebu2World Development Inc. (C2W) will start paying its Annual Guaranteed Payments to the city government this year as construction is scheduled to start.
Louie Ferrer, C2W chairperson, said the city is guaranteed to receive an annual net income of P50 million through the AGP.
“(This is) subject to 10 percent escalation every five years – significantly more than what it has previously received from Carbon Market,” Ferrer said.
Aside from the AGP, the city will also earn an additional yearly revenue of P20 million from business and property taxes, said Ferrer.
“This brings the city’s annual guaranteed income to about P70 million from the project,” he added.
The AGP is part of the joint-venture agreement Megawide and the city government entered into to renovate Carbon Public Market, the city’s largest wet public market that houses over 5,000 vendors.
Megawide’s projections also meant that the city’s current earnings from Carbon will increase by three times.
“It was during the term of Mayor Labella that Carbon reached its highest contributions to date of P21 million in 2019. With these guaranteed annual payments, Cebu City will be earning more than three times its highest previous earnings from Carbon. This is a big win for the City and the people of Cebu,” said Ferrer.
Megawide will be pouring P5.5 billion to redevelop the entire Carbon Public Market and portions of Compania Maritima.
Civil works for Phase 1 of the project will start this year.
/bmjo
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