CDIA City of Cebu

A Brief on the Report and recommendations by the CDIA Team to assist the p y development of the SRP Project. Asia Clean Energy Forum 18 J June, 2009 ADB Manila 2009, ADB, M il John-Olof Vinterhav

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Avibrant,integratedmixeduseurbanenvironment,thatwillbea showcaseforCebuandattractnationalandinternational investmentincommercial,residential,touristandhighvalue, cleanindustries,andashowcaseforgreentechnologyand efficientpublictransport.Theprovisionofattractiveopenspace andpublicareasfortheenjoymentoflocalsisavitalcomponent f p j oftheproject.

LandUse(asenvisagedbyCIPC)

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

CONTEXT FOR THE SRP AND CDIA INVOLVEMENT

Th SRP Site Sit The The South Road Properties (SRP) site comprises 300 hectares of waterfront land just to the south of the Cebu CBD and the Port of Cebu. Some 240 hectares has been reclaimed. The area is registered with PEZA as a Special Economic Zone. The project commenced in the early 1990s and is a greenfield site. CDIA assistance The Cities Development Initiative for Asia (CDIA) is supported by the Asia Development Bank (ADP) and provides advisory support for urban infrastructure investment throughout Asia The CDIA Team comprises experts in urban p p p planning, transport, utilities, finance, legal contracts and g, p , , , g communication. The CDIA assistance was envisaged in two phases. Phase 1 to assist in developing:

the planning framework for development; p prefeasibility studies; y ; infrastructure investment priorities and p agreements between the City and developers and infrastructure providers; capacity development in staff ; organisational development for the SRP.
Phase 2 of CDIA assistance envisaged assistance on pre-feasibility studies for infrastructure; tender documents for utilities and the development of SRP governance.

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

Avibrant,integratedmixeduseurbanenvironment,thatwillbea showcaseforCebuandattractnationalandinternational investmentincommercial,residential,touristandhighvalue, cleanindustries,andashowcaseforgreentechnologyand efficientpublictransport.Theprovisionofattractiveopenspace andpublicareasfortheenjoymentoflocalsisavitalcomponent f p j oftheproject.

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

3.6 Staging infrastructure to match development A preliminary Staging Plan for the SRP is shown as Figure 3.8. The plan is based on likely development commitments at the time f iti th ti of writing. The Staging Plan has been prepared to assist site planning and provide a guide for infrastructure providers who require development and staging certainty to calculate capital costs, potential revenues and rates of return. Early development is likely on the Filinvest/Institutional precincts and the Commercial site. These sites are very well located but their development and servicing will create infrastructure challenges given a two km separation distance distance. Early planning and commitments to the Mixed Use and Open Space precincts in between is highly desirable and would provide for the early establishment of the Main Street, the collector road system and utility infrastructure connections.

Figure 3.8 Preliminary staging strategy

Island Residential Mixed Mixed Use Mixed Mixed Residen UseB UseA tial

MixedUse C Commercial ITMixedUse

MixedUse Institutiona l WaterfrontTourism

Phase1(1to6 years)

Phase2(6to12 years)

Phase3(>12 years)

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

Figure 6.1 Scenario Tool analysis output Scenario 1: Slow development of Filinvest site only over a 10 year period
SRP Phase 1 Report - Part 1 - Summary and Recommendations

April, 2009

4.3 Travel Demand A dimensioning tool was developed to test various development density scenarios and determine transport transport, financial and utility impacts of development. The scenarios are described in Section 7.5 and the workings of the dimensioning tool are described in an Attachment. The high density buildout scenario (170,000 SRP residents/workers) produced a morning peak t id t / k ) d d i k travell demand of over 74,000 trips (See Figure 4.5). The BRT system with a central main street corridor can accommodate this very high passenger volume with the following in place: 2 entry corridors with some 27,000 passengers per hour for each; and 75 articulated buses. The figures assume that 75% of all SRP passengers will travell on th BRT system. t the t 4.4 BRT location The coastal highway is not a suitable BRT corridor given the following: Pedestrians will generally walk up t 400 metres to P d ti ill ll lk to t t bus stations. Much of the SRP area would be further than 1000 metres from stations. Figure 4.6 The Coast Highway is not a suitable BRT Corridor
April, 2009 SRP Phase 1 Report - Part 1 - Summary and Recommendations 10

Figure 4.5 Peak travel demand high density SRP scenario

Avibrant,integratedmixeduseurbanenvironment,thatwillbea showcaseforCebuandattractnationalandinternational investmentincommercial,residential,touristandhighvalue, cleanindustries,and ashowcaseforgreentechnologyand efficientpublictransport.Theprovisionofattractiveopenspace andpublicareasfortheenjoymentoflocalsisavitalcomponent f p j oftheproject.

Transportandmobility
Discouragecaruse Encourageandfacilitatepublictransport Providewalkandbikeways

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

12

A less extensive grid of collector roads as shown in Figure 4.3 will provide reasonable continuity between d l t developments. The collector system and Main Street/BRT need to be reflected in agreements between the City and developers together with specifications for the collector roads - road p p g g g ands footpath widths and base landscaping/lighting. Bus Rapid Transport (BRT) The Team focussed on a BRT transport solution for the SRP for several reasons: Public transport is necessary for most of the Cebu travelling public. A ratio of 75% public transport trips and 25% car trips was assumed for the SRP. Cebu wants and needs a high capacity bus system for longer trips and to reduce dependence on jeepneys jeepneys. The BRT is part of the green vision for the SRP, is at the forefront of efficient public transport and justifies funding from external sources such as the World Bank and ADP. A BRT, combined with a Main Street, will act as a major focus for SRP development rather than South Road which performs as a limited access heavy throughway to the southern settlements.

Figure 4.3 Main Street/Collector grid system

Figure 4.4 - BRT

April, 2009 SRP Phase 1 Report - Part 1 - Summary and Recommendations 13

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

14

Dual reticulation of water supply There is a substantial cost advantage in using a dual reticulation system. Under the medium density scenario cost savings of 30% were delivered using dual reticulation because water consumption is substantially reduced and the costs of desalination are much greater than the cost of additional piping. But this assumes that all developments in the SRP have dual reticulation.

District cooling A district cooling plant can offer considerable energy and cost savings in air conditioning for developers and building owners in the SRP. Night time off-peak electricity is 50% cheaper and can be used to generate chilled energy for on-peak air conditioning. The landfill is another potential source of electricity electricity. Seawater or wastewater treatment plant effluent can be used in the chilling plant. Running costs are cheaper with economies of scale and less manpower. If district cooling iis to viable on the site, di i li i bl h i then the plant must be supported by a significant percentage of SRP development.

Figure 5.5 - District Cooling

April, 2009 SRP Phase 1 Report - Part 1 - Summary and Recommendations

15

FinancialFramework Financial Framework

Figure 6.1 Scenario Tool analysis output Scenario 1: Slow development of Filinvest site only over a 10 year period
SRP Phase 1 Report - Part 1 - Summary and Recommendations

April, 2009

17

THE LEGAL FRAMEWORK

Key objectives and strategies The common elements in major developments need to be reflected in agreements with sub-developers. In many private sector developments these agreement conditions are often extensive and sometimes cover the density and height of buildings, detailed design of streetscapes etc., in accord with detailed master plans.

SRP COMMUNICATIONS PLAN

Rationale and objectives Communication about the SRP - its facets, features and vision is essential to promoting an understanding of the project and getting people to invest in it. The SRP is presently only real for those familiar with the project - Councillors and employees of the City, project consultants and some business sector representatives.

THE ORGANISATIONAL FRAMEWORK

In-House Team SRP Management Team Separate SRP Corporation

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

18

10. KEY SRP RISK FACTORS

Unrealistic growth expectations and /or unclear development intentions which can lead to high upfront capital infrastructure expenditure with comparatively low returns and damage service provider and developer confidence. o An inability to focus and resource the implementation phase of the project. o Infrastructure liabilities for major infrastructure or are not budgeted for by future Councils who may have different expenditure priorities. o Land sales or lease contracts that do not adequately cover development requirements so that the development framework for the SRP cannot be achieved including link and connecting roads, main infrastructure easements, open space infrastructure, basic development parameters etc. o Infrastructure provider contracts need to minimise any future liabilities for Council. o A political /public environment which is unstable or controversial. This is a very high risk factor which can severely impact on developer confidence and public perception of the project. The current controversy surrounding the Filinvest contract needs to be resolved quickly. All the above factors can effect confidence in the project. Retaining investor confidence in the SRP project is a primary aim throughout and must equal or better competitor projects in Cebu.
o

April, 2009

SRP Phase 1 Report - Part 1 - Summary and Recommendations

19