NegOcc to gain P530M in revenues thru PPP project

THE Provincial Government of Negros Occidental will generate at least P530 million worth of revenues through a 50-year contract with the Dynamic Builders and Construction Company Inc. relative to the implementation of P4 (public-private partnership for the people) project worth P1.7 billion.

The amount was announced by Vice Governor Eugenio Jose Lacson at the regular session of the Provincial Council on Wedneday, September 5, during the approval of an ordinance that provides authority to Governor Alfredo Marañon Jr. to sign the Memorandum of Agreement (MOA) with the project proponent.

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

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 (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.

Second District Board Member Salvador Escalante Jr., chairman of the committee on appropriations, budget and finance, said the provision of authority to the governor to enter an agreement with Dynamic Builders has to be in a form of another ordinance as stipulated in the P4 Ordinance.

After the approval of the council, the governor is expected to sign the MOA earlier next week.

Escalante earlier said that the proceeds of the agreement will go to the province’s General Fund and will be part of the 2019 Appropriations Act.

He said the P530 million worth of revenue for about 6,000-square meter property is already "favorable" on the part of the province.

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

Meanwhile, Fifth District Board Member Alain Gatuslao, chairman of the committee on laws and ordinances, 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.

Under Section 12 of the ordinance, the construction of the project will start within two years with a completion period of five years. (EPN)