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Letter To SunStar Cebu

The document provides clarification on the Cebu City Council's approval of the joint venture agreement between Cebu City and Megawide Corporation for the Carbon Public Market project. It notes that: 1) The Cebu City Council, including minority members, had over 3 weeks to review the agreement before approving it. 2) City ordinances do not require a public hearing for such agreements, though three presentations were made to the Council. 3) The annual guaranteed payments for Carbon Market alone will be around 50 million pesos for the city, more than the current annual net income from all other public markets combined. Additional tax revenues and economic benefits for the city are also expected from the project.

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5K views2 pages

Letter To SunStar Cebu

The document provides clarification on the Cebu City Council's approval of the joint venture agreement between Cebu City and Megawide Corporation for the Carbon Public Market project. It notes that: 1) The Cebu City Council, including minority members, had over 3 weeks to review the agreement before approving it. 2) City ordinances do not require a public hearing for such agreements, though three presentations were made to the Council. 3) The annual guaranteed payments for Carbon Market alone will be around 50 million pesos for the city, more than the current annual net income from all other public markets combined. Additional tax revenues and economic benefits for the city are also expected from the project.

Uploaded by

SunStar Philippine News
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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April 6, 2021

This has reference to your explainer that SunStar Cebu published on April 5, 2021. Please allow me
to share with you the following points in the hopes that it helps make the issue clearer for the
public.

1. The Cebu City Council, including the minority bloc, had ample time and several
opportunities to review the joint venture agreement (JVA) between the City of Cebu and
project proponent Megawide Corporation.

The Joint Venture Selection Committee (JVSC) of the city government endorsed the JVA to
the Cebu City Council on 11 December 2020. The legislature approved the same document
only by 06 January 2021. All Councilors had three weeks, some 26 days to thoroughly
scrutinize the provisions of the JVA.

2. The city ordinance governing procedures for entering into joint venture agreements with
private entities, City Ordinance No. 2154, does not require a public hearing, contrary to
what some of my colleagues at the Council asserted.

Nonetheless, the project was presented and explained to the City Council at least three (3)
times prior to the approval of the JVA.

The first presentation to the Council was on 16 September 2020. The JVSC then formally
endorsed the JVA to the Council with its recommendations in favor of an approval on 11
December 2020. All the councilors were given copies of the draft JVA during this session,
almost one month before the Council authorized the to sign and seal the contract.

On 17 December 2020, a City Council ad hoc committee tasked to look into the JVA
conducted a public hearing. Invitations were sent to councilors along with the vendors and
representatives of Megawide. Apart from majority councilors and the proponent’s
representatives, only Councilor Nestor Archival of the opposition attended.

Finally, the City Council tackled and subsequently approved the resolution authorizing the
Mayor to sign the JVA on 06 January 2021. Vice-Mayor Michael Ramaapproved the
resolution as wellon 11 January 2021.

3. On the matter of the LGU’s share in the project’s income, the City stands to benefit greatly
from the annual guaranteed payments stipulated in the joint venture agreement.

You will find in the City’s Audited Financial Statement for the period ending 31 December
2019 that gross receipts from market operations for that year was PhP106-million. This,
however, is the aggregated gross receipts across ten (10) public markets across Cebu City--
Five (5) market unitscomprising Carbon’s operations (Units 1,2,& 3, Freedom Park and
Warwick Barracks)ANDfive (5) other public markets within the city’s jurisdictionincluding
the Pasil Fish Depot, Taboan Market, Pardo Market, T. Padilla Market, and Ramos Market.
Net income from all these public markets, which has considered operating expenses, stood
at only about PhP40 to 50-million. Carbon represents only about 40% from this total.

On the other hand, based on the JVA, the City stands to gain around PhP50-million in annual
guaranteed payments for Carbon market ALONE. The City will continue to generate
revenues from the other public markets on top of this annual Php 50-million AGP, which in
my point of view is already very advantageous for the City.

In addition, the Carbon public-private partnership will also generate other revenues for the
City from tax sources including real property taxes, local business taxes, and other fees
which is about an additional PhP20 to 25-million.This is also on top of the economic
benefits that the project will generate through its capital expenditures and annual
operations expenditure such as local employment, local supply preference, tourism boost,
farm to market efficiencies, and the like.

I do hope these facts sufficiently shed light on the issues.

Sgd.
Atty. Raymond Alvin N. Garcia
Councilor & Majority Floor Leader
Cebu City Council

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