Cebu City gov't makes 16th amortization on SRP loan

By: PNA
August 20, 2012 7:55 PM

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CEBU CITY - The Cebu City government recently paid its 16th amortization of P260 million for the yen-denominated loan it took out to develop the 300-hectare South Road Properties.

State-owned Land Bank of the Philippines, the conduit bank for the loan, sent a summary of the amortization for the Metro Cebu Development Project III-Japan Bank for International Cooperation Loan No. PH-P157 to Cebu City Mayor Michael Rama.

Of the total amount, some P159 million will settle the principal, while a little over P100 million is earmarked for interest payment.

Acting Cebu City Treasurer Emma Villarete said the city paid the amortization Friday.

“It is debited outright from the LBP account, but I still have to get advice as to how much was debited in peso,” Villarete said.

Since February 2005, the city government has paid some P4 billion for the 12.315 billion yen loan or P6.5 billion using Friday’s exchange rate of P0.533400 to a yen.

Villarete said the loan will mature in 2025, but amortization is not a problem because the SRP has been generating income.

For this year alone, the city has collected P550,044,600 in SRP receipts since January.

Records of the City Treasurer’s Office show that the project has earned some P3 billion in revenues from lease, sale and joint venture contracts since 2007.

The amount came from the three SRP locators, namely Bigfoot Studios Inc., Filinvest Land Inc. and SM Prime Holdings Inc.

Bigfoot, the first to locate at the SRP, is leasing two hectares for 25 years. Based on the contract, the international filmmaker has to pay $13,281.63 every month.

Bigfoot has paid P38.75 million to the city in monthly rental since 2007. It has advanced lease payments through next year, including the P6.6-million security deposit the company put up.

FLI has a joint venture with the city government to develop 50.6 hectares of the reclaimed property. The developer bought 10.6 hectares on the waterfront for P1.79 billion, which is payable in seven years with an interest of five percent. FLI has paid the city some P1.19 billion, covering the amortization for four years.

City hall also got about P1.7 billion from SM Prime as partial payment for the 30.4-hectare lot bought in 2010. The property was worth P3.05 billion, with a five-percent interest charged over the seven years that SM Prime would amortize the remaining amount.

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