BY 1 VOTE, COUNCIL WITHHOLDS APPROVAL FOR CEBU CITY’S JOINT VENTURE WITH GOKONGWEI GROUP

The Cebu City Council did not authorize Mayor Tomas Osmeña to sign a joint venture agreement with a private firm to develop Kawit Island in the South Road Properties (SRP), which was projected to be worth at least P18 billion.

In a 9-8 vote, the council disapproved the resolution of Councilor Eugenio Gabuya Jr. to authorize Osmeña to sign the amended joint venture agreement with Universal Hotels and Resorts Inc. (UHRI).

In a special session yesterday, eight opposition councilors voted against the passage of the resolution, while eight administration councilors voted in favor. Since there was a tie, Vice Mayor Edgardo Labella, who presides over the Council, had to break it. He voted against the approval of the resolution.

Before the voting, Councilor Joel Garganera said that the 90-10 percent sharing scheme was not acceptable.

As proposed, the City would get 10 percent from the lease of commercial and shopping areas, hotels and the integrated resort, and 15 percent from the casino’s operation.

In a press conference, Osmeña said he expected the council’s decision. “It’s very simple politics for them because if they had approved it, by the election period there would be so much construction and all of Cebu would be excited, and that means they would lose the election,” he said.

Councilor Margarita Osmeña said the development in the Council was a clear party decision of the opposition. She worked with the ad hoc committee that scrutinized the deal.

“We went through the process. Everything that was asked for was included. What more do they want? Of course there’s always going to be what they perceived as a better deal but none was offered,” she said.