JICA offers to help market the SRP

The Japan International Cooperation Agency is offering to help market the South Road Properties and improve the capability of SRP personnel in managing large-scale investments.

JICA is ready to proceed with the implementation of the JICA-Yen Loan Technical Assistance for the marketing and the capacity building of the SRP and the SRP-Management Office.

JICA plans to support the Cebu City government as well by providing technical assistance focusing on the capacity development of the existing SRP-MO and other engineering concerns.

It also aims to provide assistance to CIPC to further improve the group’s marketing and contract management procedures.

The SRP was originally developed to accelerate economic growth in Cebu Province by providing employment and additional area for industrial and export processing zone since the Foreign Direct Investments in the Cebu area were booming at the time of the project appraisal.

However, while the project was being implemented, the Philippines was hit by the 1997 Asian Financial Crisis.

Realizing that it will be difficult to develop SRP as an export processing zone as originally planned, the city government decided to market SRP as a prime mixed-use facility accepting investments in light manufacturing, tourism, commercial, IT and other services.

This was the platform used by the Asian Cities Development Initiatives’ technical assistance in preparing the proposed SRP development framework.

CDIA has completed Phase 1 of their study and is now preparing for the implementation of Phase 2 which will cover the SRP internal transport system and the proposed main street Bus Rapid Transit, pre-feasibility study of the SRP District Cooling Plant, development of promotional and advertisement strategy for the SRP and strategy formulation for enhancing social impact of the SRP on the surrounding areas.

As for the organizational development concerns, the Cebu City Government has to pay attention to the readiness of the existing SRPMO, which is currently under the supervision of the Mayor’s Office, to handle large-scale investments in a mixed-used facility that the SRP envisions.

Based on the study conducted by the Nomura Research Institute, which was commissioned by the former JBIC to look on the general condition of the project, the current PMO does not have sufficient capability to manage large-scale urban development projects. This was also the finding of the CDIA Study on SRP Phase-1, which was completed in 2009.

Both NRI and CDIA recommended the city government to consider employing well-experienced property management professionals who shall work independently to manage and operate the property.

The city government thought then that creating a separate management office was premature at that stage given the level of activities in SRP. The city opted to strengthen the MO instead through possible technical assistance from JICA.

In a letter of JICA Chief Representative Takahiro Sasaki, last February 16 this year, he stated that both JICA and the city government had discussions on the YLTA and they both agreed to proceed with the implementation of the capacity building and marketing components of the original terms of reference.

The solid waste management component was kept on hold due to concerns which need further discussions between JICA and SRPMO. Hence, JICA went ahead with the procurement of the consultants for the capacity building and marketing components only.

SRP-MO administrative officer Schubert Dichos said they agree and found the terms beneficial to the offices concerned.

The MOA has been reviewed and is endorsed by the City Legal Office. However, since the agreement provides for undertaking of Cebu City which may cause expense on the part of the city, then it will be brought to the city council for the determination and issuance of resolution authorizing Mayor Michael Rama to enter and sign the MOA. -