Capitol worried CPVDC-Filinvest dispute will affect revenue
The Cebu provincial government will continue to find ways to resolve the dispute between Cebu City Hall, Filinvest Land Inc. and the Cebu Property Ventures and Development Corp. (CPVDC) over the perimeter wall along Geonzon Street in Cebu I.T. Park.
Cebu Provincial Board (PB) Member Grecilda “Gigi” Sanchez-Zaballero said the province which has an ongoing joint venture with Filinvest to develop the Cebu Cyberzone is focused on resolving the issue of more access to the whole area, including better vehicle flow around I.T. Park.
“The status remains the same regardless of the wall or the plant boxes. The end goal of our negotiations is to create access in the area,” she said.
The PB member said the agreement which provincial officials describe as mutually beneficial doesn’t solely focus on whether to take down the wall or not.
The Cebu City Regional Trial Court through Executive Judge Soliver Peras recently extended the 72-hour temporary restraining order (TRO) to a 20-day TRO against the demolition of the wall by the Cebu City government and Filinvest .
Unfinished
Aside from providing access to the province’s Cyberzone project with Filinvest to the CPVDC I.T. Park, officials are looking into the possibility of improving vehicle traffic in the vicinity.
She said part of the solution is to establish more connecting roads from the Filinvest property to IT Park which would lead to the Banilad-Talamban (BanTal) road.
There’s only one access road from the IT Park to the BanTal Road, which is through the unfinished Ciudad project.
Revenue
The province has been trying to mediate the dispute between Filinvest Land Inc. and CPVDC over access through Geonzon Street.
The situation was complicated by Cebu City Mayor Michael Rama’s insistence to demolish the wall.
This drove CPVDC to ask the court for an injunction against City Hall’s demolition order.
Cebu Gov. Hilario Davide III yesterday said the city’s decision to tear down the wall is “their prerogative” given the local government unit’s (LGUs) police power.
He said the province had anticipated the move.
Davide expressed concern over the TRO since it would further delay the province’s joint venture, a P6 billion Cebu Cyberzone project with Filinvest and affect the province’s revenue projection.
Big stake
Aside from a monthly rental fee, the province will also receive a monthly share of the project’s revenue.
Yesterday, Davide asked both parties anew to “understand the province’s position.”
“It will certainly affect our project with Filinvest because I believe they have been impleaded as a party defendant in the case. That is why I’m asking both parties especially CPVDC to understand,” he said.
“The province has a big stake in that project because that’s a joint venture. The longer it gets delayed, our projections for the province’s income will be heavily affected,” he added.
While the province partnered with Filinvest by virtue of a build-transfer-operate agreement for the Cebu Cyberzone, the Capitol which originally owns the land where the IT Park is built remains one of the stakeholders of the Ayala-owned I.T. Park.
Zaballero said the ongoing review of the province’s contract with Filinvest on the joint project delayed negotiations.
However, she said the review is necessary since the contract approved at the time of former Cebu governor Gwendolyn Garcia “includes provisions detrimental to the province.”
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