Saturday, March 31, 2007 Guvs, mayors slam P20M limit on LGU projects By Rianne C. Tecson Of Sun.Star Cebu
TAGBILARAN City - Local chief executives in Central Visayas are opposing the P20-million limit imposed on local government units (LGUs) to be able to implement infrastructure projects on their own.
During its full council meeting yesterday, the Regional Development Council (RDC) 7 approved a motion by RDC chairman George Arnaiz to oppose the ceiling set by the Government Procurement Policy Board in a resolution passed late last year.
Arnaiz, also governor of Oriental Negros, questioned the resolution, saying there should be no limit to the amount of projects that LGUs will implement by administration.
Projects implemented by administration are those that are carried out by the LGU itself without any contractor. Bidding for these projects will only be done for the procurement of materials.
“That (P20 million ceiling) is not enough. There should be no limit. The board should leave it to the LGUs. They should let the LGUs decide whether they are capable or not,” Arnaiz said during the meeting held at the Bohol Tropics Resort.
He cited as example their practice in Oriental Negros, where the Provincial Government implements its projects using its own equipment and personnel.
By doing so, Arnaiz said they have been able to save on money that would have been spent on taxes and contractor’s profit, which is reportedly 15 to 20 percent of the total construction cost.
“It is more cost efficient for us to implement projects by administration,” Arnaiz said.
Citing these arguments, Arnaiz presented a position paper to the RDC Executive Committee and to the League of Provinces. He has also raised the matter to President Arroyo during one of her visits to Cebu.
He also questioned the authority of the board, which was formed following the approval of the Government Procurement Act, to come up with such resolution.
“The law does not allow the board to set limits,” he said.
The board is made up of representatives from the Department of Public Works and Highways, Department of Budget and Management, National Economic and Development Authority, among others.
The board first set the limit at P2 million then raised it to P5 million before it came up with the P20-million ceiling. (RCT)
