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Wednesday, October 25, 2006
Ayala bloc seeks refund for PR expenses
By Linette C. Ramos
CEBU CITY -- Aside from their studies and the water permit, Ayala Corp. asked to be reimbursed for their public relations expenses related to the Carmen water project, including donations in cash and in kind they gave during barrio fiestas in Carmen town.
The public relations expenses are just some of the items in the P146- to P156-million project development cost that the Metropolitan Cebu Water District (MCWD) Board objected to.
MCWD Board Chairman Juan Saul Montecillo said such expenses should not be collected from either the water district or the winning bidder in the Swiss challenge on the P2-billion water project.
It should be considered an investment of the proponent and part of the risks in undertaking the studies for the project, he said.
The list of the project development cost expenses the Ayala-led consortium submitted to the MCWD Board also includes time charges.
This means that for every hour spent by an employee working on documents or anything related to the Bulk Water Supply Agreement, the consortium is demanding reimbursement for the salaries they paid their staff.
"The list includes public relations expenses which, for us, should not be part of the project development cost. Why should we pay for something like that?" Montecillo told reporters during the 888 Forum at the Cebu Parklane Hotel Tuesday morning.
Each item the consortium included in public relations expenses is small but if these are added up, these would make a considerable amount, said Montecillo.
Aside from cash donations, the consortium also gave donations in kind to Carmen and its barangays during barrio fiestas, town fiestas and sports activities.
Montecillo, however, did not disclose the amount since he didn't have the documents with him Tuesday. The public relations expenses were incurred during the course of the negotiations from 1997 to 1998.
"The project development cost seems to be very unreasonable. We were only talking about a possible reimbursement of the water permit cost. What they are asking to be reimbursed for is supposed to be part of the proponent's investment. That is your risk," he said.
He further said the expenses for the water permit and the annual dues the consortium has been paying since the permit was issued in 1998 will not exceed P50,000.
When they discussed Ayala's demand with the National Economic and Development Authority's (Neda) Investments Coordination Committee (ICC) last October 11, the committee said the Build-Operate-Transfer Law does not prohibit the reimbursement of project development costs.
"They said the law does not prohibit it but there is no precedent for it. We don't want MCWD to set a precedent. Why should we be the precedence-setting party?" Montecillo said.
Instead of allowing the refund of the project development cost by the winning challenger, the MCWD Board and the consortium are looking into the possibility of purchasing the latter's technical studies, if they are reasonably priced and will be useful to the water district.
But Cebu City Mayor Tomas Osmeña, who openly opposed the reimbursement, said MCWD does not have to buy any of the consortium's studies since they can easily get the findings of the studies from the Philippine Atmospheric Geophysical and Astronomical Services Administration (Pagasa).
"Ayala's demands are too far apart. First it was P200 million, then P110 million, then now its P75 million. What does that mean? It means they were lying to us all along. If nagsalig sila (they're banking on the fact) that they're close to President Arroyo, well I talk to the President and my loyalty is not with her, but with Cebu," the mayor told reporters.
As for the consortium's objections to the contract revisions that the Neda made, Montecillo said it's up to the Neda ICC to consider Ayala's stand on the matter. (Sun.Star Cebu/With JGA)
(October 25, 2006 issue)
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