Cebu City Mayor Michael Rama. | CDN Digital file photo
CEBU CITY, Philippines — Cebu City Mayor Michael ” Mike” Rama and Megawide Construction Corp. are set to sign the 15th City Council-approved supplemental memorandum of agreement (MOA) for the Carbon Public Market modernization this Saturday, July 30, 2022.
Rama said that after the City Council passed the supplemental MOA during the final regular session of the 15th Sangguniang Panlungsod last month, the supplemental MOA is already “good as signed” and the Mayor’s signature is just for formality.
“They (Megawide) have already invaded the area so by the time they invaded the area, that’s a contract they entered into. It is only being cured,” the Mayor said.
The Supplemental MOA cures the previous joint venture agreement (JVA). It removes the provision in the original JVA that would have stopped the development while anticipating the return of profit from a certain phase. It also increases Megawide’s investment in the project from P5 billion to P8 billion.
This guarantees that the development will proceed regardless of whether a unit has already been occupied by renters.
The city will also get at least P50 million annually, subject to ten percent escalation starting and effective on the 11th year of operations and every 5 years thereafter.
Moreover, under the supplemental MOA, the development of the portion in Sitio Bato has been moved to the last phase of the project to give time for the Cebu City government to negotiate with the residents on their relocation or transfer.
/bmjo
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Supplemental MOA to ‘cure’ Carbon Market JVA good as signed — Rama
Carbon Market supplemental MOA changes fate of vendors, Sitio Bato residents