Cebu City Council adopts supplemental MOA for Carbon redevelopment

·3 min read

THE Cebu City Council has adopted a memorandum of agreement (MOA) that aims to supplement the previous MOA entered into by the Cebu City Government and Megawide Construction Corp. for the redevelopment of the Carbon Public Market.

Vice Mayor Michael Rama delivered a privilege speech during the regular session on Wednesday, September 1, 2021, and introduced a proposed MOA, which is set to be referred to the mayor's office.

There were several issues raised by various groups about the Joint Venture Agreement (JVA) entered into by the City and the Megawide.

Such concerns reached the court after a multi-sectoral group filed a petition before the Regional Trial Court over the various provisions of the agreement between the City and the Megawide.

With nine in favor and eight against, the City Council adopted the proposed MOA introduced by Rama that modifies and amends the previous JVA.

In the proposed six-page MOA of Rama, additional documents are required as an integral part of the JVA:

--The complete original unsolicited proposal duly submitted by the private sector proponent (PSP), Megawide;

--Feasibility study, including financial projection for the proposed project;

--Eligibility documents (technical and financial) of the PSP;

--Appointment of the members of the Joint Venture Selection Committee (JVSC);

--JVSC minutes of the initial evaluation of the PSP unsolicited proposal;

--JVSC recommendation on the PSP proposal;

--Certificate of Acceptance by the local chief executive (LCE) of the PSP unsolicited proposal;

--JVSC minutes and points of negotiation on the unsolicited proposal;

--Certification issued by the LCE stating that an agreement has been reached and the City has found the PSP eligible to enter into the proposed Joint Venture (JV) activity;

--Approval by the LCE and the approved tender/selection documents for the competitive challenge;

--Proposal security/bond;

copy of the publication of invitation to Apply for Eligibility and to Submit a Proposal; Affidavit of Publication; and JVSC Recommendation for LCE to award JV to PSP.

The proposed MOA also intends to amend and enhance some portions of the JVA preliminary conditions; the project phasing; rights granted to Megawide; revenue sharing; losses and risks sharing; and construction start date and conditions precedent to construction start date.

The City Council referred the proposed MOA to the mayor's office for his adoption and enhancement and for the private sector proponent to accept the same without prejudice to the need of securing an authority from the City Council to enter and sign the final MOA.

Members of the minority chose to object to the motion of Rama, adding there should be enough time for the members of the City Council to study the proposed MOA.

City Councilors Nestor Archival and Alvin Dizon said members of the City Council should have enough time to study the additional terms and conditions proposed by Rama.

Archival said it would be better to rescind the contract, instead of having curative measures.

Rama said this only meant to keep the Carbon redevelopment project from "imminent collateral attacks and issues" that may derail the implementation of the development.

"Having been informed of the various issues surrounding the JVA for the Carbon redevelopment project, I am left with no other course of action but to require and allow a considerable time for the administration and other responsible parties to address and clarify at the soonest time the various issues affecting the contractual agreement," said Rama.

City Councilor Eugenio Gabuya Jr. also voted against Rama's proposal, adding this may lead to the violation of sub judice rule.

Meanwhile, in a press conference of the Megawide, Louie Ferrer, chief corporate affairs and branding officer, assured the ambulant vendors that a permanent area will be given to them.

Ferrer said a structure, with a 1.5 meters by 1.5 meters size for each ambulant vendor, will be established along M.L. Quezon Street.

Ferrer said the structure can accommodate up to 1,600 vendors, the number given to them by the Market Operations Division.

He also said the arkabala system (daily payment of rent) will remain. (JJL)

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