CEBU CITY, Oct. 8 (PNA) — A private developer will start the construction of the Php2-billion Ciudad project at the Cebu provincial government-owned land in Barangay Apas, Cebu City next year.
Cebu Governor Hilario Davide III said the mixed-use development project will be undertaken under the build-transfer-operate (BTO) scheme with private developer Fifth Avenue Development Corp.
The previous administration executed a BTO agreement on September 11, 2006 with Fifth Avenue, but the project never took off.
Davide and Michael Lloyd Dino, executive vice president and chief executive officer of Fifth Avenue Development Corp., signed an amended BTO agreement on Wednesday.
Under the agreement, Fifth Avenue will be responsible for the design, construction, equipping, completion and operation of the project.
Fifth Avenue recently signed a memorandum of understanding with real estate 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.”
If the project will not be completed on or before the target 24-month completion date, the agreement will be cancelled or terminated, and Fifth Avenue will pay the Province Php1 billion “by way of liquidated damages.”
Once it is operational, the province will get .55 percent of Ciudad’s monthly gross sales or Php200,000, whichever is higher. (PNA)