The City Government of Naga plans to purchase 16 to 17 hectares of the Province-owned Balili property in Barangay Tinaan to establish an economic zone, aiming to generate up to 10,000 local jobs and reduce the need for workers from southern Cebu to commute to Cebu City.
Mayor's Vision for Industrial Development
Mayor Valdemar Chiong told SunStar Cebu in a phone interview on Thursday, June 11, 2026, that they are eyeing the remaining portion of the Balili property for industrial locators. The Provincial Government has formed a technical working group after the City Government of Naga sent three letters of intent to the executive department, and the City Council passed a resolution backing the proposed purchase.
Chiong said the review followed his request to purchase and use part of the property for an economic zone instead of proceeding with the full integrated complex envisioned under the Province's memorandum of understanding with MTD Philippines Inc.
Background of the Balili Property
In 2008, the Provincial Government bought the 24.9-hectare Balili estate in Barangay Tinaan, City of Naga, for P98.9 million. The purchase became controversial after portions of the estate were found to be underwater and covered by mangroves. In its May 19, 2026, presentation at the Capitol, MTD Philippines said it envisioned the property as part of a 45-hectare integrated complex with a satellite provincial government center, sports and economic facilities, food security infrastructure, a fish port, renewable energy components, and transport terminals. The presentation listed 28.7 hectares as developable and 16.3 hectares as non-developable.
Chiong noted that in 2018, after the fatal landslide in Naga, the Province allocated two hectares of the Balili property to the city.
Job Creation and Economic Benefits
Chiong emphasized that the proposed economic zone would benefit Naga and residents in southern Cebu who travel to Cebu City for work. He cited the expansion of electronics manufacturer Cebu Mitsumi Inc. in Barangay Cantao-an, which employs 6,000 workers, as a model for local employment. "For the rest of the property, our intent is to use it as a site for industries like Mitsumi so that more jobs will be created here in the south," Chiong said in a mix of Cebuano and English.
The mayor said the food hub will proceed as sought by Gov. Pamela Baricuatro, but Naga wants to acquire the rest of the available land for industrial development. Baricuatro, he said, was open to the City Government's intent for a large part of the property.
Provincial Government's Stance
Chiong said he went to the Capitol with the City Council two weeks before the interview to present the proposal to the governor. The sale will require approval from the Provincial Board, which must determine the final purchase price. "I do not know if they may raise the price a little, but we will negotiate because this is government to government," Chiong said.
Baricuatro said Friday, June 12, 2026, that the property was clear for development and had no pending legal cases. The statement came after she said during a media briefing on Wednesday, June 10, that the Capitol was reviewing its initial master plan for the site. The governor further said the Province has to determine which portion of the Balili property will host the five- to six-hectare Cebu Mega Food Hub and which will be set aside for Chiong's proposed economic zone.
Chiong said the Province and the city have to apportion the land before the purchase can move forward. Baricuatro said the Cebu Mega Food Hub remains nonnegotiable for the Naga site because of its proximity to agricultural towns in southern Cebu and a nearby port. The facility is under a feasibility study.
Future Plans for Sports Hub
With the Naga property shifting toward light industry and food logistics, the Provincial Government is exploring other locations for its sports hub. Baricuatro said the mega sports complex may move to Bogo City in northern Cebu to complement separate plans for a proposed international airport hub in Medellin.
Timeline of the Balili Property
- 2008 — The Cebu Provincial Government, under then Gov. Gwendolyn Garcia, bought the 24.9-hectare Balili estate in Barangay Tinaan, City of Naga, for P98.9 million.
- 2009 — Portions of the estate were found to be underwater and covered by mangroves. A survey showed that 8.0124 hectares were submerged and 1.4402 hectares were mangrove areas, prompting the Capitol to seek a refund from the Balili heirs and triggering complaints against provincial officials.
- 2015 — Cebu City Regional Trial Court Branch 14 Judge Raphael Yrastorza Sr. ordered the Balili heirs on March 12 to return P37,810,400 to the Province of Cebu for the submerged and mangrove portions. The Province kept ownership of the property.
- 2010s — Backfilling work began to reclaim submerged portions of the estate. The work became a separate controversy but changed the condition of parts of the site now being considered for food logistics and industrial use.
- 2018 — After the Sept. 20 landslide in Naga, the Province allocated about two hectares of the Balili property for relocation housing for displaced families.
- 2021 — The Supreme Court upheld a Court of Appeals ruling that applied the condonation doctrine, clearing Garcia of administrative liability in the Balili-related case.
