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Sunday, March 12, 2006
Cash gap stalls power project
By Charmaine Y. Rodriguez
CEBU CITY -- A P46-million power project intended for locators of the South Reclamation Project and the southern portion of Cebu is experiencing delays because its Manila-based contractor lacks funds.
The 100-megavolt ampere power plant in the Barangay Quiot, Cebu City substation is one of the listed projects "with concerns" taken up by the Regional Development Council 7 infrastructure development committee (IDC) in a meeting last Friday.
IDC chairman Emmanuel Rabacal cited that financial problems by contractors "is always mentioned" as the cause of the delay.
According to the IDC project monitoring report, the project is only 45 percent complete and the National Transmission Corporation (Transco) is initiating a takeover of the project.
Arnaldo Claudio of Transco-Visayas told the committee that the project contractor, Alpha Omega Integrated Corp., which reportedly has been operating for 30 years, is having a cash flow problem.
However, under Republic Act 9184 or the Government Procurement Reform Act, Transco can initiate a negotiated contract with the second lowest complying bidder during the initial bidding.
If the negotiated contract fails, Transco can enter into an agreement with the third lowest complying bidder.
However, he admitted to the IDC that the project may be completed in December 2006 instead of December last year.
The contract expired last Dec. 18 and the project was still half done.
"It will support the energy requirements of the SRP and the south (of Cebu). But there are no locators yet and for now, we could still cover (the energy requirement in the area)," he told reporters.
During the meeting, Rabacal questioned Claudio if Transco checked the capacity of the contractor to finish the project.
"It was evaluated and qualified to do the work," Claudio told the committee.
Jose Mari Bigornia, one of the private sector representatives of the IDC, also pointed out that contractors for projects are supposed to be insured and contractors are supposed to issue bonds.
Claudio confirmed that contractors for government projects post a performance bond and it is still available.
However, he said Transco is still working on entering into a negotiated contract with the second lowest complying bidder.
"The garnishment of the performance bond and the blacklisting of the bidder is another process. But we will impose that," he assured the IDC. (Sun.Star Cebu)
(March 12, 2006 issue)
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