Capitol to turn former camp to comm’l district

A COMMERCIAL district is what the Capitol has planned for Camp Lapu-Lapu, a Province-owned property occupied by the military, an official said yesterday.

The development will start in the first quarter of 2011, after the guidelines recommended by the Technical Working Group are signed by Gov. Gwendolyn Garcia and the Department of National Defense, said lawyer Rory Jon Sepulveda, consultant on information and revenue generation of the Provincial Government.

The military has agreed to return 80.3 hectares in Barangays Banilad, Lahug and Apas, all in Cebu City, to the Province.

Of the total area, 30 to 40 hectares are occupied by the Central Command (Centcom), National Intelligence Coordinating Agency, Civil Relations Group, Philippine Army’s engineering battalion, Camp Lapu-Lapu Hospital, Army Reserve Force and the parade grounds, among others.

The rest are occupied by trees and settlers.

The Technical Working Group, composed of both Capitol and military representatives, is for the Armed Forces to abandon Camp Lapu-Lapu after their facilities are relocated.

Sepulveda said that the governor wants big developers to submit project proposals, so whoever will be awarded the contract will be the one to spend for the military’s relocation.

One of the site’s attractions is its nearness to the Asiatown IT Park and large hotels.

Interested parties may submit unsolicited proposals.

Sepulveda clarified the development will cover only the areas occupied by the Armed Forces and will not affect the lots occupied by settlers.

Published in the Sun.Star Cebu newspaper on December 31, 2010.

Real estate boom to take peak in 2011

(The Freeman) Updated January 01, 2011 12:00 AM

CEBU, Philippines - As big and small developers started to pour in their investments in 2010 to dramatically change Cebu’s real estate landscape, the year 2011 ushers in a new dimension of the industry’s boom.

The renewed confidence of investors and market for the Philippine economy in general will benefit the entire real estate industry, especially in Cebu—the new second-home attraction for both local and foreign markets, said Philippine Allied Chamber of Real estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio.

“The year 2011 will be the most exciting year real estate sector in recent years. A golden rabbit is a great sign for all of us. The influx of tourists and with the renewed confidence brought about by the new government will make the Philippines, especially Cebu more attractive for real estate buyers all over the world,” said Leuterio.

Aside from condominiums, which fuels the growth of the real estate sector in Cebu, Leuterio said increasing demand for middle-range and economic housing projects is projected to strengthen, and that OFWs are the main target market for this segment.

Although, there is also a good market outlook for high-end and sophisticated retirement residential projects, Leuterio said this particular segment only accounts for minimal percentage of the entire real estate growth for 2011.

Multi-billion pesos real estate projects will be started in Cebu this year, a combination of commercial and residential developments.

In 2010, Cebu gained the attention of the country’s top developers, where billions of pesos had been allocated to change the landscape of the Queen City of the South—making it a truly world-class urban center.

Established developers such as SM Prime, Filinvest, Ayala Land Inc., Aboitiz Land Inc., and among others are just few of the dozens of real estate capitalists that in the Philippines that officially announced their serious investments in Cebu in the real estate sector.

With limited availability of land in the island Province, developers have opted to build high-rise buildings for condominiums, commercial and BPO facilities, shopping malls, hotels, and re-creation centers.

The most awaited development which was announced in the middle of this year, is the conversion of the 30-hectare lot at the South Road Properties (SRP) for a mixed-used development of the SM Prime Holdings, which include the establishment of one of the world’s largest malls in Cebu.

Hans Sy, SM Prime Holdings president said that the company will spend at least P20 billion of the development of the SRP lot in the next few years, of which planning and construction activities started in the latter part of this year.

According to Sy, Cebu’s well-managed economy is one of the reasons why the company has put its money here.

“We are confident of how the whole Cebu is being managed. We are going to duplicate in Cebu what we’ve done in Manila,” he said.

Gotianun-led Filinvest Land Inc. (FLI) started its P25 billion project also at SRP in 2010, with the introduction of Citta di Mare or “City by the Sea,” a project, in partnership with the Cebu City government.

FLI’s Citta di Mare is a master-planned community that intensifies the attraction-wealth of Cebu—the resort living.

Aside from the 12 thousand to 15 thousand condominium units that will be constructed, the development will also construct integrated facilities, such as commercial, waterfront lifestyle strip, and a residential cluster, among others.

CIPC managing director Joel Mari S. Yu earlier announced that CIPC and the real estate and tourism sectors in Cebu will together formulate a roadmap in making Cebu as an International “Second Home Destination” not only in the world.

Selling condominiums to foreign national buyers, is the easiest way as it does not restrict them from owning one. Owning a land property on the other hand, requires foreigners to have a legal linkage with a Filipino partner, in most cases (for residential purposes)—a Filipina wife.

In June of this year, Ayala Corporation chairman and chief executive officer (CEO) Jaime Augusto Zobel de Ayala expressed his confidence of Cebu’s real estate sector, saying country’s giant conglomerate will advance its presence Cebu’s real estate landscape, disclosing interest to buy more lands in the province.

Zobel said that the company’s interest through its various subsidiaries in real estate development group led by ALI will be magnified here.

AboitizLand Inc. on the other hand, announced to launch at least two to three projects by 2011, mostly are into residential and commercial condominium facilities.

Newly established real estate company, Innoland Development Corporation recently announced its P1 billion investments for the “The Calyx Center”, a 26-story building will offer over 200 residential and commercial condominium units that will target the growing mobile professionals and technology workers in Cebu.

Robinsons Land Corporation also will complete its latest project ahead of schedule its first tower in the AmiSa Private Residences, the residential component of AmiSa, its master-planned five-star leisure resort community in Punta Engano, Mactan, Cebu.

The property development arm of the J. King and Son Inc., Fuente Triangle Realty Development is also currently building more condominium properties in Metro Cebu, including its condo-tel projects around the country.

Aside from these developers, there are also a growing number of new entrants in the real estate sector in Cebu, taking advantage of the booming real estate business here.

New entrant Cebu Green Peaks Development Inc., recently launched the all -residential garden high-rise condominium project located on Molave Street in Lahug, this City. The project will provide a total of 165 units of one-bedroom, two-bedroom, and garden villas and suites.

Other real estate developers are also scouting good locations for countryside residential
developments, to re-enforce Cebu’s positioning as a retirement and second home destination in the world.

This active momentum of real estate investors to change the landscape of Cebu into a world-class metropolis, has given real estate sellers and brokers opportunity to expect 2011 as a “wealth” generator year, added Leuterio, who also owns the Leuterio Realty company in Cebu.

Economists said that the low interest rates have made it more attractive for people to buy real estate properties, while banks have also expanding their loan offerings especially to residential property buyers. (FREEMAN)

Government's PPP program seen as new economic driver

By Ehda M. Dagooc (The Freeman)
Updated December 28, 2010 12:00 AM

CEBU, Philippines - While 2010 is considered as a year of “restoration of confidence and credibility”, the promising 2011 will only hit its growth level if the government will seriously implement the Public-Private-Partnership (PPP) program.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza said that the private sector is anticipating on what 2011 has to offer while the country goes with the flow of the global economic recovery.

Mendoza said the government should seriously implement the PPP at the earliest time in 2011 so that infrastructure projects can already start.

In Cebu, Mendoza said PPP is very important to maximize the tourism potential of the province.
Earlier, First Metro Investment Corporation president and vice chairman of Metro Banking Corporation Francis Sebastian said that for Cebu to take off as a legitimate global destination—for investments and tourism, it has to immediately fix its infrastructure otherwise it will be left behind by other destinations in the world.

With this, Mendoza said the private sector needs the government’s initiative in fixing the road network, water supply, and other needed infrastructure to make Cebu a truly world-class destination for tourism and investments.

For his part, Cebu Chamber of Commerce and Industry (CCCI) Samuel Chioson said unless the government will formalize the guidelines of the PPP, investors will have to wait, thus delaying the infrastructure building projects, which is seen to fuel the growth of the economy in the next few years.

Chioson added that the private sector in Cebu is ready to participate in the government’s PPP program, but they need the details such as on how they can avail of the incentives, and tariff cuts, among others.

Chioson said capitalists need the fast implementation of the program, as they are on their way to start planning for next year, and the PPP projects for instance need extensive capitalization and consultations from experts.

In Cebu for instance, Chioson said the private sector are desperate to work with the government in fixing its infrastructure to supplement the province’s robust growth in the next few years, otherwise, it is bound to lose prospects if the infrastructure is deteriorating.

In a recent dialogue between PNoy and the Cebu business sector, the latter emphasized seven priority issues that affect the economic development in Cebu and the Central Visayas as a whole.
The seven issues and concerns raised by the sector include; the appropriation of P4.404 billion infrastructure projects in Metro Cebu; the enhancement of tourism in Cebu and the region; reduction of fuel and power costs; modernization of the Mactan-Cebu International Airport, establishment of mass transit system, realization of the Panglao international Airport, and the possibility of pursuing the building of Cebu-Bohol bridge.

Reiterating his government’s thrust of promoting PPP, the President said that while the economy is growing the infrastructure bid of Cebu can be realized with the help of the private sector.
Aquino believes that while Cebu is getting the spotlight in the international market, with the regained confidence of the overseas investment community, “I’m sure there will be a lot of takers for these infrastructure projects from Cebu.”

Both Chioson and Mendoza hope that the national government will be able to produce the complete guidelines on PPP soon, so that the private sector could part its participation on different infrastructure projects specifically in Cebu.

Cebu is desperately needing infrastructure-fix as it is experiencing robust growth in the last few years, and is expected to double its growth starting next year because of the recovering economy, and strengthening foreign investor’s interest for the province.

If infrastructure is not immediately fixed, the province’s economy is bound to suffer, thereby losing opportunities for growth. (FREEMAN)

Gullas vows to strongly push the Cebu-wide ecozone bid

By Ehda M. Dagooc (The Freeman)
Updated December 30, 2010 12:00 AM

CEBU, Philippines - As the original author of the Cebu province-wide economic zone proposal, Cebu first district Representative Eduardo Gullas made a vow to Cebuanos that he will continue to push the realization of the bid.

“I will continue with the advocacy because I believe in the validity of the idea,” Gullas told The Freeman yesterday.

Gullas made this pronouncement following the Cebu Chamber of Commerce and Industry’s (CCCI) undecided state, whether to pursue and continue to seek the help from other Cebuano Congressmen to re-file the Cebu Economic Development Zone (CEDZ) proposal or the House Bill No. 1319.

Nevertheless, Gullas has already gone ahead and filed House Bill 91, declaring Cebu province as an economic zone in the first day of 15th Congress on July 1, 2010.

Gullas reiterated that he is serious in pushing this province-wide economic zone proposal for Cebu, in fact this is already the third time that he filed the same bill in Congress.

Gullas filed a similar bill in the Congress, even before the joint CEDZ or House Bill No. 1319 was filed and passed to the Senate level during the 14th Congress.

He crafted and filed a similar bill in the 13th Congress (2004-2007), in his vision to make Cebu a more competitive investment destination.

In the 14th Congress, a joint and collaborative effort of passing the Bill with the CCCI and all Cebuano Congressmen, including him to further push the passage of the concept into law.

Although, CCCI is still undecided if it were going to pursue its plan to initiate the re-filing the same bill with the help of some Cebuano Congressmen this time, Gullas vowed that “I’ll give it my best shot. I sincerely believe this is the best for Cebu.”

Technically, CCCI is not the main proponent of the CEDZ bill, he explained.

“The idea of making the entire Cebu province as an economic zone, including its two islands-- Bantayan and Camotes was conceived by me. I want to put the truth on its proper light,” Gullas clarified.

He admitted though that this proposal will again go through a very difficult journey. However, is he is determined to continue with his advocacy and promised not to stop fighting.

The Congressman said that Cebu has all the merits becoming a province-wide economic zone.
The CEDZ is envisioned to be a paradigm of an effective and functioning Public-Private Sector Partnership with the private sector taking the lead and government providing infrastructure and institutional support and contributing part of the needed resources.

Gullas expressed his strong determination to take on the fight, and sincerely hopes that other Congressmen, who wanted to make Cebu a world-class investment destination, will join with him.

Just like his advocacy to provide Cebu with the LRT (Light Rail Transit), Gullas said he is also passionate in pursuing the realization of the provide-wide ecozone proposal although it means a tougher fight--only to make Cebu a truly world-class province.

Cebu economy in 2011Tourism, BPOs still top drivers

By Ehda M. Dagooc (The Freeman)
Updated January 02, 2011 12:00 AM

CEBU, Philippines - While the world is generally anticipating full recovery in 2011, Cebu on the other hand thinks that there’s nothing to “recover” from as its economy continued to stay healthy in 2010 and was barely affected by the so called “global recession.”

“I don’t think recovery is an accurate word. Cebu economy wasn’t direly affected by the global recession experienced by US and Europe. Cebu was able to manage well in protecting itself from being affected by the global recession,” said Philippine Retailers Association (PRA-Cebu) chairman Jonathan Jay P. Aldeguer.

Now that everybody is anticipating for 2011 as a gateway to the world’s recovery, Aldeguer said Cebu should be see a more dynamic economy to be led the old drivers—tourism and Business Process Outsourcing (BPO) companies.

Aldeguer said the threat is no longer the weakness of the world economy, but more the calamities and untoward incidents such as the August 2010 hostage-taking incident in Manila.
Cebu Business Club (CBC) president Gordon Alan Joseph believes that the “old drivers” will bring Cebu into an ultimate economic boom in 2011 provided that proper infrastructure will be fixed to complement the expected growth.

What is good now, Joseph said, is there is high confidence among local and foreign investors to put their money in the Philippines. Thus, 2011 is the year to be watched out for, and that the government should be active to support any private-initiated endeavors, such as making it easier for private sector to enter into infrastructure projects through the Private-Public-Partnership (PPP) program of President Benigno Aquino III.

Cebu Chamber of Commerce and Industry (CCCI) president SamuelChioson said that there is a need for government fast track the implementation of PPP, as the private sector is excited to take advantage of the opportunities in 2011 and the delay of implementation could mean loss of opportunity.

According to Chioson, the private sector in Cebu is ready to participate in the government’s PPP program, but they need the details such as on how they can avail of the incentives, tariff cuts, and others.

Chioson said capitalists need the fast implementation of the program so that they can incorporate it in their plans for the coming year.

In Cebu for instance, Chioson said the private sector is desperate to work with the government in fixing its infrastructure, in order to supplement the province’s robust growth in the next few years, otherwise, it is expected to lose its chance, if infrastructure is deteriorating.

During a recent dialogue between Aquino and Cebu businessmen, the president outlined seven priorities that his administration has identified as the ones that would have a direct effect to the economy of Central Visayas.

The seven issues and concerns raised by the sector are the appropriation of P4.404 billion infrastructure projects in Metro Cebu; the enhancement of tourism in Cebu and the region; reduction of fuel and power costs; modernization of the Mactan-Cebu International Airport, establishment of a mass transit system, realization of the Panglao international Airport; and the possibility of pursuing the linking Cebu and Bohol with a bridge.

Chioson hopes that the national government will be able to produce the complete guidelines on PPP soon, so that the private sector could also see how it can participate in the different infrastructure projects specifically in Cebu.

The CCCI president added that Cebu desperately needs more infrastructure projects to support a robust growth in the last few years.For the coming year, this is needed to support the expected growth.

Chioson pointed out that the government can start by fixing what needs to be repaired.
Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza also said that the robust growth in tourism and BPO sectors would result to a lot of employment in Cebu, but such can only happen with proper infrastructure support from government.

He said that an improvement in the roads, traffic situation, and garbage disposal are among the priorities that have to be made in terms of infrastructure to make Cebu a more attractive tourist destination.

For the BPO sector, what is most important in for Cebu to provide sufficient and capable manpower to fill the seats, said Joseph.

Economist Perry Fajardo also concurs that the tourism sector would be expected to drive the economy of the province next year.

He has noted how the growth of the tourism sector seems to be picking up and only a major calamity or crisis would derail it in 2011.

According to Fajardo as Cebu has already established its name in the world market, as preferred business and leisure destination, it is going to benefit from the recovering interest of international travelers.

“Tourists have money. Travel goes with higher income market. The world’s recovery is giving the wealthy travelers a new life,” said Fajardo, who is the dean of the Department of Economics at the University of San Carlos.

He also strongly believes in the need to complement any expected growth with proper infrastructure.

According to Fajardo the Local Government Units, should make tourism as big income generator starting next year, that’s why investment on tourism related facilities, and infrastructure should be started. —/NLQ (FREEMAN