Monday, September 24, 2018

P4 project up for public consultation, challenge

THE proposed P4 (public-private partnership in the province) project is now up for public consultation and "swiss challenge" by other interested private sector proponents.

This, after the Provincial Board, during its regular session yesterday, July 11, approved the endorsement of Governor Alfredo Marañon Jr. requesting for approval of the Joint Certificate of Successful Negotiations and Terms of Reference based on terms and conditions agreed in the negotiations between the P4 Selection Committee and original proponent Dynamic Builders and Construction Company.

This is relative to the lease of 6,485-square meter portion of the province’s property on Gatuslao Street in Bacolod City where the Provincial Administration Center (PAC) is located.

Last week, the Board held in abeyance such approval pending the provision of lacking documents and inputs identified during the caucus.

Second District Board Member Salvador Escalante Jr., chairman of the committee on appropriations, budget and finance, said yesterday the unsolicited proposal of Dynamic Builders will be officially announced during the public consultation on Wednesday, July 18.

Escalante said, provided under the P4 Ordinance, the selection committee is mandated to negotiate with the original proponent about the price, terms, and other necessary agreements that need to be incorporated in the contract.

"All of these will be published next Thursday, July 12, a day after the public consultation," he said, adding that he cannot yet disclose other "details" of the negotiation for the protection also of the original proponent's interest.

Initially, the Dynamic Builders has offered 50 years of lease period at a rate of P78 per square meter per month, which will escalate by 10 percent every five years.

The development called Capitol Commercial Center worth P1.4 billion is a nine-storey building that mainly includes hotel, mall and business process outsourcing (BPO).

Escalante said would be challengers will be given enough time, at least two weeks from the start of the "swiss challenge" on Thursday, July 19.

Interested proponents should submit documents expressing their intention to participate, which will be reviewed by the P4 Selection Committee.

"Remember, this is a P1.4 billion project. So if the challenger is a small contractor or its capital base is not that big, it might not be accepted," Escalante said, adding that "it should level the offer of the original proponent, or even surpass it."

The type of project should also be the same with the plan of Dynamic Builders, a mix-use development.

It might be used for other projects, that is what the Provincial Government is trying to avoid, he stressed.

Moreover, the Provincial Board also approved yesterday the resolution authorizing the governor, through the P4 Selection Committee, to sell the tender documents worth P200,000 to challengers.

It will be the basis of the "swiss challenge," Escalante said.

If in case there will be no challenger, the province can already proceed to the awarding of the contract to the original proponent, he added.