'Costly' business proposal gets cold shoulder
A broker who claimed to have linkages with big time and well known Spanish investors is asking the city government and local businessmen to put up an investment of 250,000 Euro or roughly P25 million as a start up capital to his group to promote Iloilo and Panay in Spain.
However, the business proposal, considered as too expensive, did not get immediate approval from local officials.
In his first meeting yesterday with the officials of the city government and local businessmen, Rogelio Bruan wants the locals to invest 250,000 Euros to start the network with Spanish businessmen for a possible joint Filipino-Spanish venture.
Brokers are primarily to set the link between the two parties and get their commissions from any concluded transactions they made. Bruan claimed he was authorized by some of the investors in Spain to transact business in Iloilo City.
City Tourism Office chief head Ben Jimena said the 250,000 Euros will only cover the marketing promotion expenses for Iloilo and Panay with Bruan's word to convert the 250,000 Euros with "possible joint venture between local businessmen and Spanish investors." The start up capital or fund will be coursed through a "marketing travel company."
Jimena also said Bruan also asked the city government to set up additional infrastructure for promotion purposes. As new infrastructures will sell Iloilo and Panay better to Spanish investors and tourists. The businessmen were surprised of Bruan's terms of agreement before a final agreement for Filipino-Spanish joint venture is made.
Bruan's visit to Iloilo City was facilitated by Ruby Javellana, an Ilongga. He reportedly helped Javellana's sibling to get a scholarship grant in Centenary College in Spain. He was not even comfortable to talk to the media about his proposals. No other details on Bruan is available and his alleged links and association with Spanish investors.
Jimena said nothing final cropped up after the meeting was concluded. The city and the business sectors wants a protection between the locals and the Spanish investors. The 250,000 Euros is a very big amount, no businessman will gamble his money without clear policies, said Jimena.
He said group decided to have first a test market before any investment is poured out and before any new infrastructure arise in the city. Bruan will present Iloilo as well as Panay with the present facilities with no money component first. Brochures which reflects Iloilo's economy, culture and history, cost of doing business and incentives will also be provided to him in order to sell Iloilo and Panay to the investors.
With the local's recommendation, Bruan said they will translate the brochures and materials to Spanish. It was not however clear as to who will pay for the translation cost of materials.
Jimena said, the city is not in a hurry to get foreign investments especially with the very big amount the broker is asking.
"The venture should be based on documents and their should be a return of investment in every business that is made," Jimena added.