Firm proposes P200B “mega infra projects”
The Cebu City government is now looking into a proposal of a private company that could reportedly generate over P200 billion worth of “mega infrastructure projects” for the city.
In an interview yesterday, Jan. 17, 2024, Cebu City Administrator Collin Rosell said they were able to listen to the unsolicited proposal of Mandaraig Infrabuild Corporation (MIC) at the Radisson Blu on January 16, 2024.
Upon hearing the proposal, Rosell said they will be studying the viability of MIC considering that there are factors that need to coincide with the city ordinance.
According to Rosell, there are investors coming in the city with similar proposals. As he explained, the current trend involves an “organizer” of the investors that will be signifying their intent to be the proponent of a certain project.
“They won’t like to come in as contractors but as investor of the city, but the trend right now, naay usa ka group nga sila nay manawag sa funder sa contractor, ug tanan ingredients for a development or infrastructure projects nga mga big tickets to be done possibly, including gikan sa China kana siyang China railway,” said Rosell.
MIC is a Cebu-based corporation, but was established in Iloilo City. According to Rosell, the Cebu City government has emphasized its “inclusivity” regarding partnerships.
Rosell explained that MIC has already established “funders” and wants to get projects from the city and utilize its resources.
He disclosed that previous Joint Venture Agreements (JVA) that the city government has entered into with project contractors usually involve “syndicated loans.”
“Forgive me for the word na syndicated but what is meant by that is lain-lain na mga bangko gi pull og usa ka bangko, unya ni come up sila og billions na money to spare for that project,” said Rosell.
Rosell noted that MIC has a system that involves calling funders from outside the country, specifically from the United Arab Emirates, saying that such claims were supported with documents.
“But we have our own ordinance man to follow in terms of joint venture. Kini siyang mga projects with the private sectors so we just have to follow this ordinance and procedures for them to be granted the opportunity to partner with the City in developing the City as well as introducing infrastructure projects,” said Rosell.
According to Rosell, as MIC’s scheme is more on being an organizer of a certain project, they are trying to beef up their capacity by hoping to pull projects from the Cebu City government.
Among the MIC commitments is to establish a linkage from international funders that will be coming in. Rosell said it also has a standby fund for the purpose.
More importantly, the projects that the MIC proposed are the construction of at least 14 structures at the South Road Properties (SRP). These include a Government Center Building that will house the new Cebu City
Hall at the SRP.
Mandaraig said they will also be constructing a new IT community at the SRP, as well as executive buildings. The proposal also includes a monorail system and cable car system.
Aside from this, Rosell highlighted that they have listed at least “12 big ticket projects” that are mostly aligned with the Singapore-like vision of the government.
“Mora sila’g makig pusta-anay ba kon mabuhat ba nila o dili. And they continuously come and come, and follow up. They submitted papers, if you require them, they modify and submit, and if this is the kind of private sector you have in the city, the city should be tapping them,” said Rosell.
Right after the presentation, the MIC officially submitted its unsolicited proposal and a draft of JVA to the city government.
Rosell said the proposal is currently with the city’s Joint Venture - Selection Committee (JVSC), which will review all relevant documents to the project.
“It is not just considering, it is already laid in the ordinance. The ordinance is saying that everything will be time bound. When somebody will submit an unsolicited proposal then the city has to act on it especially when it is complete with supporting documents,” said Rosell.
“Then later on, to deny it or approve, it is the option of the city right after the negotiation…so the process is there,” he added.