IN THE bid to ensure that the proposed P4 (public-private partnership in the province) project would protect the interest of the Provincial Government, the Provincial Bouncil of Negros Occidental has held in abeyance the approval of negotiation results and terms of reference for the P1.6 billion worth of development.
The Board was supposed to discuss and approve the endorsement of Governor Alfredo Marañon Jr. requesting for approval of the Joint Certificate of Successful Negotiations and Terms of Reference.
The negotiation certificate and terms of reference are based on the agreed terms and conditions resulted from the negotiations between the P4 Selection Committee and Dynamic Builders and Construction Company, regarding 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.
Second District Board Member Salvador Escalante Jr., chairman of the committee on appropriations, budget and finance, however, said there are lacking documents that have yet to be provided as identified during yesterday’s caucus.
Escalante said there were also suggestions recommended by the council, including the need for the P4 Selection Committee to again meet and negotiate with the original proponent.
The committee will also have a meeting on Friday, July 6, to specifically look into the recommendations of the Board, the official said.
“What if the construction will not start within a two-year period, what will happen? This is just one clarification that we would like to include in the contract. If this happens, most probably we will rescind the contract,” he added.
The Provincial Board, during its regular session last week, has given the governor the authority to make negotiations and agreements for the P4 project called Capitol Commercial Center.
Dynamic’s offer is 50 years of lease period at a rate of P78 per square meter per month, which will escalate by 10 percent every five years.
Earlier, the Provincial Government expressed optimism that the development of the mix-use commercial structure mainly for business process outsourcing and hotel will complement to the income which it can source from its other revenue-generating properties.
Aside from signing the result of the negotiations, the governor also requested for the authority to publish the terms of reference which the Board also held in abeyance pending the submission of the additional documents and inputs.
“We might have it during our regular session on Wednesday next week,” Escalante said.
He added that based on the terms of reference submitted to them, the construction will be in two years. But it was not stipulated that “what will happen if another proponent will challenge and eventually wins?”
“These are minor legal questions and industry standard issues that we are trying to avoid,” Escalante said, adding that “the overall result of the negotiations should benefit and protect the interest of the province.”
Moreover, the development is seen to start within the year. Once the project is awarded to the proponent by August, the construction may begin in November.
Within five months of the awarding of the project, the province should clear and vacate the property.
Escalante said there are still “waste materials” that needs to be accounted as per guidelines of the Commission on Audit.
In the supplemental budget approved by the Board earlier, it has allotted P5 million intended as rent expenses for offices which will be affected by the development, he added.