Ciudad revived
Capitol, Fifth Avenue sign an amended build-transfer-operate agreement
Timetable runs beyond the 2016 election: Province has 3 years, at most, to turn over the property to Fifth Avenue; the company, in turn, will deliver the revised plans, detailed engineering and construction plans 12 months after the property is turned over
NINE years after they first signed a deal, Cebu Province and a private developer signed an amended build-transfer-operate (BTO) agreement for the Ciudad Project in Barangay Apas, Cebu City.
After signing the agreement, Michael Lloyd Dino, executive vice president and chief executive officer of Fifth Avenue Development Corp., told Cebu Gov. Hilario Davide III they will start the construction next year.
Dino and Davide signed the BTO agreement yesterday afternoon in the Office of the Governor’s conference room. Samuel Tan of Fifth Avenue and Provincial Board (PB) Member Peter John Calderon signed the agreement as witnesses.
The PB members and other officials of Fifth Avenue attended.
Dino said they are still working on the construction cost of the project but it would probably be over P2 billion.
“There will be some changes because we will be opening a road from Ayala to M.J. Cuenco. We have to do re-planning. We have to re-cost. Remember, it was signed a few years back. And the cost is different now. I’m sure it increased,” Dino told reporters.
Fifth Avenue recently signed a memorandum of understanding with Filinvest Land Inc. (FLI), which would finance the development of the Ciudad property. FLI will also act as Fifth Avenue’s “exclusive marketing, operation and management arm.”
Based on the amended BTO, since the execution of the original BTO agreement last Sept. 11, 2006 between the Province and Fifth Avenue, certain developments have affected the project.
The previous BTO agreement, according to the new deal, did not have authorization from the PB. Construction of the project was not completed and it was never turned over to the Province, and the Province signed a memorandum of agreement with Cebu Property Ventures and Development Corp. to open access points connecting IT Park to Gov. Manuel Cuenco Ave.
These developments resulted in the amendment of the BTO.
Fifth Avenue will be responsible for the design, construction, equipping, completion and operation of the project.
The Provincial Government will give possession of the property to Fifth Avenue “not later than three years from the execution of the BTO or until such time the issue on the informal settlers is resolved.”
According to the construction timetable, the preparation of revised plans, including the detailed engineering and
construction plans, will take 12 months after the turnover of the property.
After these plans are completed, it will take 24 months to complete Phase 1.
If the project will not be completed on or before the target completion date, the agreement will be cancelled or terminated, and Fifth Avenue will pay the Province P1 billion “by way of liquidated damages.”
Once it is operational, the Capitol will get .55 percent of Ciudad’s monthly gross sales or P200,000, whichever is higher.
In a separate interview, Davide said he hoped that the project will push through. The first-term governor believes there will be no problem with the construction of Ciudad after the agreement was signed.
“Maayo man ang pagkasabot namo. Niagi gyud na’g deliberation sa board members so nakita nila (That agreement was well planned. It passed a thorough deliberation among the PB members and they saw that it is) advantageous to the Provincial Government,” Davide said.