Capitol, Dynamic ink deal for P1.7-B public-private project

THE Provincial Government of Negros Occidental has signed a memorandum of agreement (MOA) with Dynamic Builders and Construction Company Inc. (DBCCI) relative to the implementation of P4 (public-private partnership for the people) project worth P1.7 billion in the province.

Governor Alfredo Marañon Jr. signed for the Provincial Government along with Ricardo Yanson Jr. of DBCCI at Seda Capitol Central in Bacolod City yesterday.

Members of the Provincial Board (PB) led by Vice Governor Eugenio Jose Lacson were also present during the MOA signing.

Lacson, during the approval of an ordinance providing authority to the governor to enter an agreement with the project proponent last week, announced that the province is generating at least P530 million worth of revenues through a 50-year contract with DBCCI.

Under the contract, the local-based construction firm will lease the 6,885-square meter portion of the province’s property on Gatuslao Street in Bacolod City where the Provincial Administration Center (PAC) is located.

This is to give way for the development of “Capitol Commercial Center,” a 10-storey structure that will host a hotel, mall, business process outsourcing (BPO) offices, and other commercial spaces.

The lessee is obligated to pay P551,225 per month with advance payment of P13.2 million and a security deposit of the same amount. The 50-year rental escalates by five percent every five years.

“Aside from the revenue, the province will own the property after 50 years,” Lacson said.

Under Section 12 of the approved ordinance, the construction of the project will start within two years with the completion period of five years.

Fifth District Board Member Alain Gatuslao, chairman of the PB committee on laws and ordinances, earlier said that after 50 years, there is an option to extend the contract.

Gatuslao said under the term of the lease there is no automatic renewal though. But as to until when the contract can be renewed, there is also no specific time period stipulated in the agreement.

“Under the Corporation Code of the Philippines, a corporation only has a lifespan of 50 years. Once Dynamic Builders renews its corporate lifespan then they can renew correspondingly with the provincial government for the project,” he pointed out.

Second District Board Member Salvador Escalante Jr., chairman of the PB committee on appropriations, budget and finance, said that the proceeds of the agreement will go to the province’s General Fund and will be part of the 2019 Appropriations Act.

“Aside from the revenue, the development can really benefit the province as it will create thousands of employment and opportunities to Negrenses,” Escalante earlier said, adding that “the governor would like us to be at par with other provinces in the country.”