THE Provincial Government of Negros Occidental is returning the P27 million it loaned from the Land Bank of the Philippines (LBP) which was initially intended for the development of the Provincial Administration Center (PAC), an official said.
Second District Board Member Salvador Escalante Jr., chairman of the Sangguniang Panlalawigan (SP) committee on appropriations, budget and finance, said the amount represents the 15 percent mobilization fund released earlier by the province to Dynamic Builders and Construction Company Inc., the supposed project developer.
Escalante, however, said since the provincial government and Dynamic Builders ventured into another project so the Capitol has to return the P27 million, which forms part of about P186-million initial budget for PAC development.
Instead of developing the PAC, the local-based construction firm is investing about P1.7 billion for the establishment of “Capitol Commercial Center” under the P4 (public-private partnership for the people) project.
The 10-storey structure mainly for commercial spaces will be constructed at the 6,885-square meter portion of the province’s property on Gatuslao Street in Bacolod City where the current PAC is located.
“Dynamic Builder has actually returned the fund to the province due to the cancellation of the initial proposal to develop the PAC building,” he said, adding that “we approved the supplemental budget request for us to allocate the P27 million as return-fund to LBP.”
Escalante pointed out that “the transfer of funds has to be provided under an ordinance.”
As this developed, the provincial government is now working on incurring another P1.2 billion loan with the LBP to fund various infrastructure projects.
These include the development of a new PAC building worth P900 million.
Others are for the renovation of Eleuterio Decena Memorial District Hospital in Hinoba-an town worth P125 million, and purchase of various facilities and equipment for Mambukal Hotel and Convention Center and Tourist Lodge in Murcia and Negros First Hotel and Negros Pala-Pala and Food Terminal in Bacolod City amounting to P175 million.
“We will go through with the procurement law which includes the usual process like publication and bidding,” he said, adding that “in three to four months time we will know as to whom the project will be awarded.”