Study on mall project urged

Tuesday, July 19, 2011

LA TRINIDAD, Benguet – The National Economic Development Authority (Neda) reevaluated the shelved proposal for the Jarco mall project here and suggested the local government unit to study the proposal.

Neda Regional Director Juan Ngalob said if the project is not feasible, the private sector partner may not be able to comply with its contractual obligations to the government.

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“There might be a need to downscale the project or increase revenues and decrease costs.”

The jarco mall deal is in the process of being reviewed following the strict process of public consultation.

Under the contract, Jarco will develop a 3,910-square-meter lot currently utilized by the municipal government as a pay parking area. The projected cost of the three story building is around P268,000,000.

Neda said a strict public consultation is also needed to get suggestions from the private sector and stakeholders saying the process are to ensure public acceptability as a requirement in Build, Operate and Transfer (BOT) contracts.

Neda added the local government should get its fair share from the project. “There might be a need to revisit the contract for BOT to ensure to optimum benefits accure to the LGU,” Ngalob stressed.

In the past, Neda recommended scrapping the whole deal saying it is not beneficial to the town with violations of the BOT law have been made in the process of approving the mall deal by the previous administration.