Wednesday, March 28, 2007 Payment for Baguio convention hub not automatic: official
PLANS of paying the annual amortization of the Baguio Convention Center (BCC) using savings from city funds may sound easy but this would have to go through appropriation proceedings and approval by the City Council, a city official said.
Local Finance Committee (LFC) head and Budget Officer Leticia Clemente said while the city could indeed source out from the general fund the payment for the acquisition of the BCC, this does not come automatically because the city's 2007 budget did not include the payment of BCC's amortization.
As such, the City Mayor's Office would have to file a proposal before the City Council and ask that an allocation be made, Clemente explained.
She added that the LFC could not assure the full allocation since the delinquencies have ballooned to P117 million.
Acting Baguio Mayor Reinaldo Bautista Jr. earlier announced that pending the resolution of the issue on the tax and duty free exemptions of the Camp John Hay developer, the city would pay for the amortization of the BCC and later on collect from the Bases Conversion and Development Authority (BCDA) the city's shares from the operation and lease rentals of the former American rest and recreation facility.
But aside from the P50-million initial payment made in January 2004, the city failed to settle its obligations for years 2005, 2006 and 2007.
In December, the Government Service Insurance System (GSIS) already informed the city that sequestration of the BCC was in order because of the default in payments.
And although the BCC at present needs complete rehabilitation, which would involve replacement of its toilets, plumbing, lighting fixtures including the chairs, carpet and roofing system, Bautista said the city would not give up the convention center.
"It is a matter of pride," he said, reiterating that if the city has completed its payment, privatizing the facility has more advantages because experts in managing convention facilities are more proficient in managing the BCC. (RO)
