Security bond from SRP highest bidders to fund bonuses, asphalting projects

THE estimated P1.7 billion revenues from the bidding of two South Road Properties (SRP) lots will be used to fund a proposed supplemental budget, officials said.

Of the proposed P250-million supplemental budget 1 (SB1) for this year, P78 million will be used for the productivity enhancement incentive (PEI) of 5,000 City Hall employees.

Acting city treasurer Diwa Cuevas said they plan to give a month’s worth of salary as bonus to the employees.

The bonus is covered by Executive Order (EO) 181 signed by President Benigno Aquino III last May.

The order grants a one-time PEI to all government employees amounting to either P5,000 or one month basic salary.

Cuevas said the remaining amount will be used to fund P50 million worth of asphalting projects and also to pay for the city’s obligations from previous years.

Highest

The Cebu city government received its highest one-day collection of P1.7 billion during the opening of bids for the two SRP lots last Tuesday.

“In the history of Cebu City, this is the highest collection collected in just one day. Cebu City is P1.1 billion richer because of the bid security,” Cuevas said.

She was referring to a manager’s check submitted to the City Treasurer’s Office by the consortium of SM Prime Holdings, Inc. (SM), Ayala Land, Inc. (ALI) and its affiliate Cebu Holdings Inc. (CHI) worth P1,185,228,000.

The consortium was the lone bidder for the 26-hectare (263,384 square meters) Lot No. 8 where the Pedro Calungsod templete stands, submitting a P10.9 billion bid at the opening of bids in Cebu City Hall’s Social Hall last Tuesday.

The city also received another check worth P645 million later in the afternoon for the bid security bond of Filinvest Land, Inc.

Downpayment

Filinvest edged out the P4.2-billion bid of JG Summit Holdings, Inc. with a P6.75-billion bid for the 19-hectare consolidated portions of Lots No. 7 and 17 located beside their existing property and that of SM Seaside City Complex.

The bid security bonds submitted by the two winning bidders will form part of their 50 percent downpayment, which will have to be paid after City Hall’s committee on Awards issues the Notice of Award.

These conditions were specified under the Terms of Reference (TOR) in a resolution passed by the City Council last year authorizing Mayor Michael Rama to negotiate and dispose of the lots in behalf of the city.

The balance of the winning bidders’ payments will have to be settled equally within three years at an interest rate of six percent per annum.

Former councilor Joey Daluz, head of the technical working group, said the city can expect revenues of P2 billion every year for the next three years as payment for the 26-hectare property.

He said the city won’t have any more problems in funding the city’s P13.4-billion annual budget this year, the highest in history.