THE Malimgas Market project looked great on paper.

The past city administration under mayor Benjie Lim built the Malimgas Market based on a feasibility study, conducted by a consultant from Manila, which projected a 16 percent internal rate of return.

“This (rate of return) did not materialize,” said City Administrator Alvin Fernandez, who was then vice mayor when the market was built.

Fernandez said he agreed to pursue the project based on the calculations of the feasibility study as it would have meant that income from the market would be able to cover the loan from the Land Bank of the Philippines, which had an interest of 12 percent.

The market, constructed through a P320 million loan from the Land Bank, cost P280 million for the building and P40 million for its air-conditioning.

Fernandez said the actual operations of the market showed how far off the projected revenues based on the study was as the city government has been subsidized the daily operations of the market since it started operations.

The Malimgas Market has yet to record a profit and the stall rentals and proceeds for cash tickets are not even enough to cover the loan amortization.

PARKING, DRAINAGE

The city administrator also pointed out that the building’s third floor, envisioned to generate income from vehicle parking fees, is ill-designed while the drainage system is also insufficient for the market’s requirements, as confirmed by City Engineer Virginia Rosario.

“They (Lim administration) were boasting that they built a market, but we should ask them: What kind of market did they build?,” Fernandez said.

Fernandez said even when the present administration had opened the 3rd floor of the Malimgas Market for free parking, car owners refuse to use it owing to the hazards posed by the steep and narrow passage.

Rosario, who claims to have not been privy to the building plan, said the canals are too narrow and the septic tank is too small making the drainage system inefficient.

She said the city’s vacron engine has to be used twice a week to empty the septic tank to avoid an overflow.

Rosario was with Acting Mayor Belen Fernandez when the latter supervised the general cleaning of the Malimgas Market for two nights last week.

The market vendors also told the acting mayor that they were likewise not consulted on the design of the structure.

“We were consulted on the assignment of stalls but not on the design of the stall, including the drainage,” said Ed Cervantes, president of the Malimgas Meat Vendors Association.—LM

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