The Cebu Provincial Government expects to collect hundreds of millions of pesos after revising the payment method for reclamation developers' obligations to the province.
New ordinance allows cash or lot swap
Under Provincial Ordinance 2025-18, developers can now pay the mandatory 10% government share in cash or through a lot swap instead of transferring actual reclaimed property. The Cebu Provincial Reclamation Authority (CPRA) reviewed the implementing rules during its first meeting under Governor Pamela Baricuatro's administration.
In a media interview on Monday, June 29, 2026, Provincial Administrator Atty. Joseph Felix “Ace” Durano said the change will help increase provincial revenue. He added that most investors prefer to pay rather than give a portion of their land. “From discussions with the proponents, they just want to pay,” he said.
Flexible payment options reinstated
According to Durano, the flexible payment options were brought back to make the policy more investor-friendly. One company affected by the old rule was Tsuneishi Heavy Industries in Balamban, which has over 782,000 square meters of reclaimed area. Under the old policy, it was difficult for the company to partition its shipyard to give the 10% share to the Capitol.
Durano noted that dividing the reclaimed area could disrupt the plans of industrial projects. Under the new rule, developers have three options: transfer the land, pay the equivalent amount based on current market value, or conduct a lot swap using another property of equal value.
Payment based on market value
The Provincial Assessor’s Office stated that cash payment will be based on the current market value at the time of payment. Durano also explained that a developer cannot obtain a tax declaration until they fulfill their 10% obligation. The tax declaration is the first step to securing a title for the reclaimed land and using it as collateral for bank loans.
The CPRA has approved a resolution directing the Provincial Investment and Promotions Office to ask developers to submit their chosen mode of compliance.
