Rama: SRP lot sales to wipe out P3-B loan
Cebu City Mayor Michael Rama. (CDN PHOTO/ JUNJIE MENDOZA)
Cebu City Mayor Michael Rama said the city can wipe out its P3 billion debt using proceeds of the soon-to-be finalized sale of lots in the South Road Properties (SRP).
He said making the city “debt-free” would be his top priority in the last year of his second term.
Rama delivered his State of the City Address in Plaza Independencia on July 4, a venue and date he chose for the symbolism of declaring freedom from the “bondage” of paying P500 million a year for the Japanese loan that financed the SRP about 15 years ago.
In a press conference later, Rama said he was being “an early Santa Clause on July 4” by “declaring independence” from that financial obligation.
Rama surprised spectators by thanking his political rival, former congressman and mayor Tomas Osmeña, who pioneered the establishment of the the 300-hectare reclamation project.
He said Osmeña “should be commended for he is a part of history.”
READ: Rama thanks Osmeña for SRP, council for authorizing lot sales
Rama also recognized the city councilors who authorized the disposal of a 26-hectare lot and 19-hectare lot in the SRP.
“These people should be remembered. This is an emotional time. We’ve always been ostracized, criticized, (made the target of) fabricated accusations, unfounded allegations. But today, I am presenting all of you, men with courage, men with conviction, men that no one can question. Because of their approval, the City of Cebu will be debt-free,” said Rama.
RELEASE FINANCIAL AID
The mayor also announced the release next week of financial aid and honoraria for beneficiaries.
On Tuesday, Persons with Disabilities (PWDs) will receive an amount still to be finalized by the treasurer. On Wednesday, senior citizens will collect P2,000 each while barangay officials will receiving their honoraria on Thursday.
City Hall employees look forward to a one-month bonus next month. The City Council is due to approve a Supplemental Budget (SB) 1 pushed by the mayor’s office.
Rama also hinted that financial aid for burial, medicine and hospitalization will be increased next year.
‘HERITAGE’
A light rain fell when the mayor went on stage but stopped as he began his speech. It resumed after the SOCA.
The mayor arrived with his son Mikel past 5 p.m. on board a tartanilla or horse-drawn carriage. He hopped off, shook hands of some attendees and entered Fort San Pedro to prepare before giving his speech.
“Our administration has always been fighting for heritage,” Rama said, explaining his decision to ride the tartanilla.
He said his lawyer-son was would bring this value “to his generation, to the Rama generation and all of them will be reminded, don’t destroy what was there.”
At the start of his speech, Rama asked for a moment of silence to remember the victims who died in the Ormoc sea mishap
In a press conference later, the mayor said he has been meeting with the city treasurer to work out an outright payment of the outstanding balance for the SRP loan which is P3 billion.
“How much is the utang? How much do we have as money? We have the money, therefore we must go for it. And we won’t have to think about P500 million every year as debt servicing. Why prolong the agony when the answer has come?” he said.
Cebu City already received checks for P1.7 billion as the 10 percent bid bond from SM-Ayala Consortium and Filinvest which posted the highest winning bids for two SRP lots with a total bid of P16.7 billion.
Half of the bid amount is to be paid within the year. The balance will be given in equal installments over the next three years with a six percent interest rate per annum.
Rama called the sale the “best gift to Cebu City” during an inaugural session of the City Council earlier in the week.
Ahead, many projects still need to be finished. Rama cited the new P514 million Cebu City Medical Center, whose construction will start this year, , the Carbon Market, Heritage Village Tour program, the Waterfront development, a third Cebu-Mactan Bridge, the Bus Rapid Transit project, opening and widening more roads, a Children’s Park in Pasil, relocation sites and housing for the homeless, auctioning lots, and setting up free WiFi in urban and mountain barangays.
Barangay officials, organizations, senior citizens attended the SOCA at the park.
Among the guests were the mayor’s showbiz celebrity relatives – cousin Annabelle Rama, her husband Eddie Guttierez and their son, Richard.
An overview of the year’s accomplishments with budget figures of spending were shown in a video played in between parts of his speech.
Rama said he pursued his policy which uses the acronym “SEE D BIG PPP” which stands for social services, environment, education, development, business, infrastructure, governance, public affairs, place, people.
“Our projects should serve the greater good… We have to maintain the balance of ecology.. Education must be for all. Children should always be guided, inculcated with proper education, good manners and right conduct being emphasized,” he said in his speech.
Mayor Rama’s ‘special guest’
A lot of interest was drawn to Mayor Rama’s special guest, Catbalogan City Mayor Stephany Uy-Tan.
After the program at Plaza Independencia, when it was announced that members of the “Rama family” would gather for a photo on stage, the mayor gestured to Uy to join them.
FAMILY PICTURE. Catbalogan City Mayor Stephany Uy-Tan (in blue mini dress) joins the Rama clan for a photo after the State of the City Address at Plaza Independencia. From far left: the mayor’s cousin Boboy Rama, Chingbee Poca Cuizon, the mayor’s son Mikel, Mayor Rama, Norma Rama Arante, Mayor Uy-Tan, Leila Rama Nuñez (the mayor’s ’sister), Thelma Roa Rama, and Janet Ligan Rama. (CDN PHOTO/JUNJIE MENDOZA)
Visibly surprised but still smiling, she obliged and stood with his relatives to pose for the photos.
Rama’s public gesture confirmed what has been talked about in City Hall circles for months, that Mayor Uy-Tan is the bachelor mayor’s new love interest.
Noticeably absent in the SOCA program was the mayor’s longtime girlfriend Joy Pesquera, a former city councilor who was appointed to a board seat in the water district and the city’s Mendicancy Board.
Last month it was Rama’s turn to be in Samar with his son Mikel to attend Mayor Uy-Tan’s state of the city address.
READ: Rama attends Catbalogan city mayor’s SOCA
Asked about her presence as a “new face” in the “Rama Family”, the mayor told reporters “New faces will always come.”
He declined to comment further.
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