TALISAY CITY, Cebu — Cash, land or a property swap.
Reclamation developers in Cebu now have three ways to satisfy the provincial government’s mandatory 10-percent entitlement after the Provincial Capitol restored flexible compliance options under its amended reclamation ordinance.
Provincial Ordinance 2025-18 allows reclamation proponents to comply by transferring 10 percent of the usable reclaimed land to the province, paying its equivalent value in cash based on the property’s prevailing appraised or market value, whichever is higher, or offering another property of equal value through a lot swap.
The measure, signed by Gov. Pamela Baricuatro after its unanimous approval by the Provincial Board, reinstates compliance options that had been removed by previous amendments, which required developers to surrender a physical portion of the reclaimed property.
Provincial administrator Ace Durano said the earlier policy proved impractical for many proponents because carving out a fixed portion of reclaimed land often disrupted the overall layout and development plans of their projects.
During the inaugural meeting of the Cebu Provincial Reclamation Authority (CPRA) Durano said the amendment was intended to encourage more reclamation investments while preserving the Province’s entitlement under the ordinance.
“The reason why we brought back the flexibility [option] is to make it more investor friendly. And I think it makes sense that the option is given to them [proponents] because they have to choose what is affordable to them,” Durano said.
He also cited the experience of Tsuneishi Heavy Industries in Balamban, which encountered difficulty determining which portion of its reclaimed property should be transferred to the provincial government under the previous rules.
Durano also said that several companies with completed reclamation projects postponed complying with the provincial government’s required share while waiting for the ordinance to be amended.
He added that the previous requirement discouraged some investors from pursuing reclamation projects in Cebu because of the challenges posed by surrendering a specific portion of reclaimed land.
With the revised ordinance now in effect, the Provincial Capitol expects many developers to choose the cash payment option instead of transferring reclaimed property, a move that could significantly increase provincial revenues.
“In fact, katong nalista, these are already done reclamation. Most of them wants to pay in cash (In fact, those on the list have already completed their reclamation projects. Most of them want to pay in cash),” Durano said.
He said the province could generate hundreds of millions of pesos if proponents settle their obligations through cash payments, excluding additional collections from real property taxes.
During the CPRA meeting, members also approved a resolution authorizing the Provincial Investment and Promotions Office to formally require reclamation proponents to declare in writing which compliance option they intend to adopt.
Provincial assessor Michelle Languido said developers opting to pay in cash would have to base their payment on the property’s prevailing appraised or market value at the time of settlement rather than its value when the reclamation project was completed.
Durano, however, noted the importance of securing tax declarations for reclaimed properties, describing them as proof of possession and an initial requirement toward obtaining land titles.