Saturday, September 23, 2006 North Cebu officials ‘don’t care’ which supplier gets deal
Local government officials who signed a letter endorsing a water supply project were relieved when they were assured yesterday that the project development cost is not P200 million.
They’re hoping that a smaller amount will encourage interested parties to join the price challenge. Should a winner emerge, that entity will have to refund the development cost to the consortium that first submitted an unsolicited proposal for the project.
The local officials are requesting the National Economic and Development Authority (Neda) to speed up the processing of papers for the Carmen bulk water supply project.
Bernard Sheahan, director for advisory services of the International Finance Corp. (IFC), assured that the figure is “below P200 million.”
IFC representatives met with Mandaue City Mayor Thadeo Ouano, Consolacion Mayor Avelino Gungob Jr., Compostela Mayor Antonio Dangoy, Lapu-Lapu City Councilor Eugene Espedido, Cordova Vice Mayor Danilo Sinugbuhan and Liloan Vice Mayor Merelito Surita yesterday afternoon.
Espedido and Dangoy raised the concern regarding the P200-million development cost.
Sheahan said there are no specific figures available yet, but preliminary estimates point to a lower price.
“It’s a purely speculative figure,” he said.
Gungob was also concerned as to when the water supply project would be implemented, saying Consolacion is the fastest-growing municipality in the province.
Sanjay Grewal, IFC principal investment officer, said that if the process goes well, it might be ready in three years.
The officials told the IFC representatives that the matter is a great issue to them, after they found out that only a few of their constituents are served by MCWD.
Most of the constituents, they said, are relying on deep wells and private suppliers.
In an interview before the officials met with the IFC representatives, Espedido said that their letter to Neda didn’t mention a specific contractor.
He pointed out that they just requested Neda to hasten the processing of papers for the project, so that their constituents will not be deprived of water.
Sinugbuhan said their stand was just misinterpreted, adding that it just so happened the Ayala-led consortium has made an offer to supply the water.
Ouano, for his part, said that Cebu City Mayor Tomas Osmeña is just “being honest with himself.”
“We aren’t challengers. Nganong kami man awayon? (Why should anyone pick a fight with us?),” he said.
Osmeña earlier said that if the officials who want the Carmen water project to push through, Ouano and the others should be ready with P200 million.
According to Osmeña, that’s the project development cost that the winning challenger will have to refund the Ayala-Stateland consortium and that the Metro Cebu constituents will not have to shoulder the cost.
Osmeña objected to the contract provision that requires the refund, saying it will discourage other parties from joining the bidding. He also fears the winning challenger might pass on the project development cost to the consumers. (AAG)
