Artist Impression of a redeveloped Carbon Public Market | Photo courtesy of Megawide Construction Corporation
CEBU CITY, Philippines — Cebu City will get P5 million by the end of this year as the Carbon Modernization Project to be undertaken by Megawide Construction Corporation commences.
This was the agreed-upon amount in the Joint Venture Agreement (JVA) that Megawide will pay an Annual Guaranteed Payment (AGP) of P5 million in the first year.
The city should receive P14 million for the second year, P34 million for the third year, and P50 million starting from the fourth year and beyond within the period of concession.
Louis Ferrer, the Executive Director for Infrastructure of Megawide, said that it was part of their business model to give the city this AGP in a staggered way.
“It’s part of our business model. We have our computations for that,” said Ferrer.
Critics have questioned this agreement of Megawide with the city because the city earns at most of P21 million.
They said the P5 million in the first year and P14 million for the second year means that the city will lose P21 million per year.
However, Ferrer said this is not the case as the market operations will not be affected by the construction of Phase One and the city will still earn its usual profit from the market on the first to second year.
Megawide is expected to earn less in the first year as only the Puso Village will be open.
The interim market will be managed by the city and the rent will also be collected by the city for now.
If Megawide manages to complete Phase One of the Carbon Market, they will earn profit from the rent of the Puso Village where tiangges are expected to stand.
Food shops and merchandise shops will open here including local Lechon brands from Talisay City and Carcar City.
The AGP is going to increase every year because more areas of development such as the boqueria, city-check-in, seaport, and lifestyle hub will open gradually.
From the fourth year onwards, the city can expect an AGP of P50 million reaching P70 million with the taxes expected from the establishments.
For the rent of the new Carbon Market, Megawide will collect the rental fees for the city government.
However, the market code will still be amended to make this happen and the rental fees cannot be adjusted without the approval of the City Council.
Ferrer said this has been one of the concerns of the vendors, but he assured them that even if they collected the rent, the proceeds of which will go back to maintaining the market.
He said the rent will also be regulated by the Market Code, which only the City Council can amend. /rcg