A mixed-use township with industrial, commercial and residential components is set to rise in Cebu City, Roberto A. Varquez, manager of the Cebu Investment Promotions Center, said in a briefing.
The development will take place at the South Road Properties (SRP), which is owned and being developed by the Cebu City government.
The 300-hectare SRP is located on reclaimed land on the east coast of Cebu City, capital of Cebu province.
About 10 hectares, Varquez said, have been built with ready-to-use factory facilities for light industries. Talks are ongoing with a US-based door locks manufacturer and other parties interested in locating in the complex.
The SRP is close to Cebu City’s central business district and is accessible from the main island via four access points.
A six-lane coastal road runs the length of the estate and SRP will be part of the proposed Bus Rapid Transit (BRT) network.
“The BRT will be the main mode of transportation within SRP. We are in the preparatory stage now. CDIA is set to complete the study for SRP-BRT by mid next year. Hopefully it meets the requirements of our locators,” Varquez said.
This will address the anticipated boom in passenger traffic going to and from SRP when factories, high-rise condominiums, business process outsourcing (BPO) offices, schools, government offices, convention facilities and shopping areas rise in SRP.
The developments at the SRP are seen to increase travel demand through Cebu City by early 2013.
The consultants of the Asian Development Bank-Cities Development Initiative for Asia proposed a public transport route that will be established by 2013 to provide access to early phases of development while the main line of the BRT is pending.
The BRT main line will roll out in 2014 but the industrial, commercial and residential developments are expected to roll out starting 2013.
A 60-hectare water resource within SRP will be developed via joint venture with Cebu-based Pilipinas Water Resources Inc. to meet the needs of locators, Varquez said.
Socioeconomic Planning Secretary Cayetano W. Paderanga Jr. commended the Cebu City government for undertaking such development on its own.
Paderanga said that he is encouraging other local government units to push similar projects since they know best what kind of developments would have the best impact on their constituents in terms of economic and social opportunities.
“Not everything has to go through the national government,” Paderanga said.
According to the city government website, Cebu City is ranked eighth among the top 10 Asian Cities of the Future on a list compiled by the Foreign Direct Investment (FDI) magazine of the Financial Times Group.
Cebu City, according to the website, is also fourth on the list of 10 most cost-effective cities, 7th in best quality of life, and is second only to Singapore in development and promotion.
He said the planning for SRP started back in 1992 with a P12-billion loan from the Japanese government.
It was the first large loan made directly to a local government unit, Varquez said.
Last year, SM Prime holdings signed a P2.7-billion deal to buy a 30.4-hectare property inside SRP.
The area will soon host a convention facility, shopping mall, school, hospital, and high-rise residential condominiums. Varquez said it may also be possible that provisions will be made for BPO facilities.
Filinvest also bought a 50.6-hectare area and even entered into a joint venture agreement with the city government covering part of this asset.