THE main proponent in the issuance of a 25-year franchise favoring the operation of the ferry terminal to Double Dragon Corp. has withdrawn his proposed ordinance on Tuesday, August 23, during the City Council session.
Councilor Leone Gerochi said the Joint Venture Agreement (JVA) between Iloilo City and Double Dragon constitutes a valid and binding contract and that there is no need for the issuance of a separate franchise for ferry terminal operation.
Gerochi, chairman of the committee on transportation, energy and public utilities, said a legal opinion from the City Legal Office stated that the Guimaras-Iloilo ferry terminal project may legally operate even without a franchise and based solely on the strength of the JVA signed in 2012.
The legal opinion showed that “the JVA was duly approved by the City Council which had given authority to the city mayor to sign the agreement. It can be said that the JVA contains all the terms and conditions of the contract between the City of Iloilo and Double Dragon, and is the governing law between the parties insofar as the operation of the terminal is concerned.”
The legal opinion also stated that “even if a franchise is to be issued for the operation of the ferry terminal, which as earlier said, is not necessary, this will not in any way, affect or result into the mooting of cases pending before the courts as the determination of the merit of said cases will not be effectively hampered.”
In light of the letter sent by Double Dragon dated August 1, 2016 that Sia Family/Injap Group Foundation will subsidize the terminal fee of ferry boat passengers going to Guimaras for a period of 10 years, Gerochi is recommending that a memorandum of agreement be executed to reflect the same by and between the city of Iloilo, Double Dragon and Sia Family/Injap Group foundation. (Sunnex)