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, Sept. 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 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. (JJL)