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Friday, May 16, 2003
Treņas okays formal deal with Ace
By Ronilo Ladrido Pamonag
ILOILO City Mayor Jerry Treņas Wednesday approved the holding of formal negotiations with Ace Builders and Enterprises (ABE), contractor of the city's P130-million housing project in Pavia.
But he also said that he will not hesitate to rescind the contract if the situation calls for such action.
City Planning and Development Officer Saturnino Gonzalez had earlier proposed for formal negotiations with ABE to determine the city's next action on the suspended works at the housing project.
"That's good so that we can finalize everything. We will rescind if there is a need to and cut off cleanly from them (ABE). Whatever obligations we have to them, we will pay, and whatever their obligations to us, they also will," the mayor said.
Treņas said the City Government will push for a "win-win situation" during the negotiations.
The mayor designated Gonzalez and City Legal Officer Jose Espinosa III, along with the other members of the Task Force Housing, to compose the city's negotiating panel.
Gonzalez said the city will push for a "workable compromise, agreeable to both parties, and a compromise wherein neither party is aggrieved."
He said, however, that the City Government and the ABE have different "wavelengths" and are "on a different plain."
While ABE wants to terminate the contract, he said, they are also demanding that the City pay them P25.23 million, based on the physical accomplishment and financial reports.
"That is a sign to sit down and talk, but we might have a hard time since the termination notice filed by the ABE made things complicated," Gonzalez added.
Last April 24, ABE filed a notice to terminate contract claiming that the City's failure to pay them constitutes substantial violation of the contract.
Though he is optimistic that the negotiations will not fall through, the mayor said he just might rescind the contract with the ABE.
"It appears that things are going that way," he said, but quickly added that there must be negotiations first.
(May 15, 2003 issue)
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