Friday, April 13, 2007 City to release P28 million for new gov't center
WHY pursue a P400 million loan at the Land Bank of the Philippines
(LBP) or Philippine National Bank (PNB) if the Bacolod City Government can
afford to finance the new government center project out of its annual
budget and yearly savings?
"No, we need to have a loan to assure that there is an available and
expendable amount for this very huge project," Bacolod Vice Mayor
Renecito Novero said in a press conference on Wednesday at the Manokan Country
in the city.
The loan, however, will grow up to P1 billion in 15 years due to an
eight-percent interest per annum based on a memorandum of agreement (MOA)
entered into between the City Government and LBP.
Novero's answer was in response to query of the media after Hilmarc's
Construction Corporation (HCC), contractor for P395-million new
government center project, sent its second billing to the city for P28.6
million worth of work accomplishment as of March 31.
The first billing was sent on February 20 for P59 million or 15 percent
mobilization fund out the total project bid price of P395 million.
Since the city still has problems with both LBP and PNB on the loan,
Mayor Evelio Leonardia and the City Council approved the release of P59
million taken from the City's coffer through an appropriation ordinance
duly approved by majority members of the City Council.
Although, it was opposed by some, Novero came to the City Council's
rescue and the mayor from negative comments, saying: "We are legally
pressured so we need to release the P59 million or else the city will engage
in a legal battle with Hilmarc's"
At the same time, Novero also explained to the public that the P59
million is deductible from soon to be approved P400 million loan.
Now that there's another billing in the amount of P28.6 million, both
Leonardia and Novero said: "Technically and basically, this will be
taken again from the city's coffer."
"We will look again for funding but basically this will be sourced from
the current surplus or savings that we have last year," added
Leonardia.
Novero assured that the City Council is ready to pass another
appropriation ordinance for the purpose.
But both said they have to file prior query before the Commission on
Elections (Comelec) on whether the new government center project is
within bounds of exemption from the election ban. (EASD/NCD)
