CEBU CITY TO EARN P99M
In last week’s session, the Cebu City Council authorized Mayor Tomas Osmeña to sign a lease with the Cebu Link Joint Venture, a contractor of the third bridge project, which will use the jetty and some 57,170 square meters in the South Road Properties Lea
The Cebu City Council has approved the request of Cebu Link Joint Venture (CLJV) to lease a portion of the South Road Properties (SRP) for the third bridge project, which will allow the City to earn close to P100 million.
In their regular session last Tuesday, the Council authorized Mayor Tomas Osmeña to sign the contract of lease with CLJV, represented by Julio Ruiz, project director.
It will be up to the executive department and CLJV to schedule the signing of the contract of lease.
According to a resolution sponsored by Councilor Eugenio Gabuya Jr., CLJV wants to rent 57,170 square meters of the SRP and use the jetty of the reclaimed property with an estimated land area of 25,000 square meters.
CLJV will rent a portion of the SRP for 46 months, which will start on March 1 until Dec. 30, 2021, as provided under the contract of lease.
The City is expected to earn some P99.4 million in rental fees during the duration of the lease, exclusive of value-added and withholding taxes.
CLJV is a partner and contractor of the Cebu-Cordova Link Expressway (CCLEX) project, more commonly known as the third bridge project. The third bridge project, which will connect the municipality of Cordova to mainland Cebu City, is expected to decongest vehicular traffic on two existing bridges between Mactan Island and mainland Cebu.
If needed, the contract period may be extended.
What will it be for?
The property that will be rented will serve as staging area for the construction and support services for the project, which include parking spaces for heavy and light equipment, barracks, temporary dumpsite of construction debris, and temporary storage area, among others.
The City will have to transfer in favor of CLJV the right to occupy and manage the property during the rental period. It will also allow CLJV to construct all temporary improvements on the leased property that will be used for the project.
The total contract value will be paid through a down payment of P20 million, which is equivalent to the rate of the first year of the contract, upon the signing. Subsequent installments will be payable quarterly starting in 2019.