Treñas elated by purchase of old airport site
Mayor Jerry Treñas expressed elation over the decision of real estate developer Megaworld Corp. to pour in P1.5 billion worth of investments in the City.
Corporate officials made the announcement during last Friday's turn over ceremonies for the old Iloilo airport in Mandurriao district.
Megaworld Corp. bested three other real estate developers for the 54-hectare oil airport, which the government privatized following the construction of the P6.2 billion New Iloilo Airport at Cabatuan town.
The corporation shelled out P1.2 billion to purchase the airport. They plan to spend another P1.5 billion to develop the property, Kingson Sian, executive director and senior vice president of Megaworld Corp., said during a presentation.
Sian revealed that they will turn the old Iloilo airport into a 'live-work-play-learn community.'
Megaworld will be building a business process outsourcing, condominium units, a hotel, a convention center, a themed commercial/retail center, a recreation area, and a skills training center, he said.
We are very bullish about the property market, he said.
Sian pointed out several factors indicating an upbeat real estate market: the demand by mid-income earners for houses, low mortgage interest rates, the Overseas Contract Workers market, and government spending on infrastructure.
Treñas said that Megaworld's investments would mean additional jobs for City residents.
The graduates of our universities and colleges would no longer have to go to Metro Manila or go abroad just to find a job, the mayor said.
It's not so much about the taxes that would accrue to the City, he said, but about employment opportunities.
However, the mayor expressed concern over the power glut in the city. He said that Megaworld would need about 35 megawatts of power, something which independent power producer Panay Power Corporation cannot supply at the present.
City officials are currently evaluating a proposal to build a coal-fired power plant in the City.
Because of the privatization of the old airport, the government was able to realize P1.2 billion, Finance Sec. Margarito Teves said during the turn over ceremonies. The income will be entered in the books for October.
To date, the government was able to raise P43.2 billion from the sale of its assets, including shareholdings . Teves said that the government received substantial income from the sale of its shares in the Philippine Telecommunications Investment Corporation (PTIC) and the Philippine National Oil Corporaion-Energy Development Company (PNOC-EDC).
Proceeds realized out of the privatization of its assets has helped the government address its yawning budget deficit.