Cebu City Council Approves P50 Million Advance from SM Prime Holdings

Strategic Insights -

The Cebu City Council has authorized Mayor Tomas Osmena to enter into an agreement with SM Prime Holdings Inc. for the advance payment of P50 million, which will be deducted from the company's future tax liabilities with the city. The payment will be used to finance vital government and infrastructure projects, including the relocation of informal settlers, lighting up of streets, and construction of traffic road signs and center islands. This agreement is a repeat of a similar arrangement made in 2006, where SM Prime Holdings advanced P53.9 million in taxes to the city for beautification projects.

Key Takeaways:

  • The Cebu City Council has authorized Mayor Tomas Osmena to enter into an agreement with SM Prime Holdings Inc. for the advance payment of P50 million, which will be deducted from the company's future tax liabilities with the city.
  • The payment will be used to finance vital government and infrastructure projects, including the relocation of informal settlers living in the five streets at the North Reclamation Area (NRAS).
  • The agreement includes the construction of traffic road signs and center islands in the five streets and the rehabilitation of the drainage system, including the Mahiga Creek.
  • The advanced payment is a repeat of a similar arrangement made in 2007, but the source mentions that both parties had the same arrangement in July 2006.
  • The payment will be made in two installments of P25 million each, with the first installment to be paid within 30 days upon submission of the approved resolution and the second installment to be paid 30 days later.
  • The agreement is deemed terminated upon the complete liquidation of the full amount by the city.

Statistics:

  • P50 million: the amount of the advance payment from SM Prime Holdings to the city.
  • P25 million: the amount of each installment of the advance payment.
  • 30 days: the timeframe for submission of the approved resolution for the first installment.
  • 30 days: the timeframe for the payment of the second installment.
  • 2006: the year the same arrangement was made between SM Prime Holdings and the city.

Sources:

  • PNA (Philippine News Agency) - Cebu City Council Approves P50 Million Advance from SM Prime Holdings Inc.