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Monday, August 18, 2003
Capitol backs BOT scheme

THE Provincial Legal Office supported the proposed Build-Operate-Transfer (BOT) scheme offered by a private firm to build the multi-million-peso Sibulan port project instead of the proposal of the Philippine Ports Authority (PPA).

Capitol Legal Officer Erwin Vergara said he would support what is more advantageous to the municipality of Sibulan.

"Sa PPA man gud, walay kahigayunan nga manag-iya sa lungsod sa Sibulan ang pantalan ug gamay lang ang kuwarta nga masulod sa local nga panudlanan sa lungsod (In the PPA, there is no chance that Sibulan can own the port, and there is only a limited amount of money that can be deposited in the locality)," the legal officer said.

He added that with the BOT, the company would turn over operations to the municipality after 20 years.

He explained that after the turnover, the local government unit of Sibulan would operate the port and collect all income and revenues from activities there.

Vergara said the 11-man Municipal Council of the town is equally divided on the issue and that he, as the concerned presiding officer, broke the tie.

PPA earlier refused to issue a construction permit to Aumori Rapid Transport System Corporation and submitted a proposal to build the port.

Moreover, the municipal government entered into a memorandum of agreement (MOA) with Aumori to build the P5 million port through the BOT scheme.

Mayor Antonio Renacia, in a separate interview, stressed that possible legal repercussions against the municipality because of the MOA he signed on authority from the municipal council sometime in 2001.

Aumori stopped construction of the project after PPA issued a cease and decease order against it.

"Ang akong gikabalak-an kay hangtod lamang sa bulan sa November ang gitakda sa maong construction (What I'm worried about is that the scheduled construction is only until November)," the mayor stressed. VLC

(August 16, 2003 issue)

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