Flood control project boosts property appraisal in city
Demand for real estate in Iloilo and the neighboring town of Pavia have increased significantly with the expected mitigation of the flood problem of the city after the completion of a multi-billion flood control project.
Iloilo City Mayor Jerry Treñas said the project has helped boost property appraisal with investors optimistic that it will resolve the city's perennial flooding problem
"Prices (of real property) are picking up," Treñas told reporters in a project briefing of the Department of Public Works and Highways.
The mayor said the flood control project will put away the the long-running joke that houses in flood-prone subdivisions especially in Jaro District are offered for selling at "buy-one-take-one" packages.
Mayor Arcadio Gorriceta of Pavia town said investors have poured in P1 billion for real estate development for the first quarter of this year because of prospects for a flood-free residential properties.
The investment includes the development of a 100-hectare property by Sta. Lucia, said Gorriceta.
The Iloilo Flood Control Project II was conceived in response to the recurring flooding problem of the city which usually affects around 80 percent of the city's barangays from three to four times yearly.
The P4.26-billion project was part of recommendations in the master plan and feasibility study conducted by the Japan International Cooperation Agency (Jica) from 1993 to 1995.
It is financed by Japan Bank for International Cooperation (JBIC) 25th Yen Loan Package amounting to P2.95 billion and the Philippine government counterpart fund reaching P1.309 billion.
The main component of the project is the construction of the 4.75-kilometer Jaro Floodway at the intersection of the Tigum and Aganan Rivers which will divert flood water coming from Aganan and Tigum Rivers to the Iloilo Strait. A 690-meter floodway is also being constructed in La Paz District.
The project also includes the raising of river banks, stretching of the the alignment of rivers,
excavation of high water channel and the excavation of connecting river channels to ensure the smooth flow of water.
The Stage 1 of the project started in March 2006 and is expected to be completed in September 2009.
The civil works component is 17.83 percent and ahead by their target of 16.73 percent by this month, according to an update report.
Engr. Al Fruto, assistant project manager, said they hope to finish acquisition of the right-of-way on work areas by June this year covering around 550 land owners.
Fruto said they have acquired the right of way or permit to work in 85 percent of the work areas. The land-owners were paid from P760-P1,800 per sq m.
Project consultant Kiego Ito said this is a high percentage of workable area compared to other projects.
Around 430 of 531 families affected by the Stage 1 of the project have been relocated to sites in Barangays Buntatala, So-oc and Kasadyahan," said Fruto.
Treñas said the perennial flooding problem has seriously affected the city's economy as economic activity comes to a standstill when the city is flooded.
He said the flooding has resulted to tremendous losses and disruption to business establishments and even government offices because these forced to close because consumers and employees could not leave their homes or pass through the city streets.
Treñas said the resolution of the flooding problem is also among the concerns of prospective buyers of the 50-hectare site of the old Iloilo airport.
Buyers will next month bid for the site estimated to cost from P500 million to P2 billion.