SP endorses BOT project

By December 24, 2006Headlines, News

GUADIZ ADOPTS BANIQUED’S POSITION

Conscience bloc votes ‘No’

AFTER a lengthy debate that lasted more than five hours, the Sangguniang Panlungsod finally passed a resolution granting Mayor Benjamin Lim the authority to enter into a contract with the winning bidder that will construct an P84 million tourism park building at the Magsaysay Park in front of city hall.

With a vote of eight affirmative, two negative and one abstention, the draft resolution of Councilor Nicanor Aquino allowing the controversial project to proceed finally passed the legislative mill.

The affirmative votes came from Councilors Teofilo Guadiz III, Nicanor Aquino, Vlad Mata, Danilo Torio, Librada Reyna, Luis Samson Jr., Eric Muñoz and Charise Perez, Councilors Farah Decano and Jose Netu Tamayo, both lawyers and known to be part of the council’s conscience bloc, were the only two who voted against the resolution. They disagreed with Guadiz’s claim that the bidding substantially complied with the law.

Only Councilor Michael Fernandez abstained and did not explain his vote.

Prior to the voting, Decano, Tamayo and Fernandez already rejected the committee report submitted by Guadiz that maintained all the documents reviewed by him pertaining to the bidding were in order and complied with the requirements of the Build-Operate-Transfer law.

Councilor Alex de Venecia said he failed to attend the special session because he received his notice just a few minutes before the session. It was De Venecia who initially questioned the attempt of Mayor Benjamin Lim to seek the adoption of draft resolutions endorsing the project without prior advice to the city council about the project.

The resolution will now allow Mayor Lim to enter into a contract with Metrostate Realty Corporation, a company belatedly formed by two original bidders, S and F Realty Corporation and LXS Builders and Suppliers, but which records show was not pre-qualified as a bidder.

As the identified winning bidder, Metrostate will now undertake the tourism and commercial development of a portion of the Magsaysay park lot under the build-operate-transfer scheme.

At one point, Vice Mayor Alvin Fernandez asked Guadiz if the latter is related to Alexander Guadiz Siapno, the owner of LXS Builders and Supplier, Guadiz replied, “He’s a cousin whom I do not wish to see”.

The draft resolution was referred to Guadiz’s committee after some members of the city council, particularly Vice Mayor Fernandez raised a series of questions indicating that procedures defined in the BOT law were not observed.

When Councilor Farah Marie Decano asked how Metrostate became a qualified bidder when two original bidders, namely F and S Construction and and LXS Builders & Supplies were the only qualified bidders, Guadiz merely pointed out that the two corporations agreed to form the MetroState Realty Corporation as a joint venture following their qualification and saw nothing wrong with it since the two companies have proven track records in the industry.

Guadiz determined that after Metrostate became the sole bidder that has complied with all the technical requirements, there was basis to declare MRC the winner in the public bidding that was conducted.

While Guadiz also acknowledged that Metrostate has only a paid-up capital of P100,000, it was able to present a letter of guarantee from Equitable Bank extending it a credit line for the P84 million project.

In essence, Guadiz adopted all the arguments submitted by City Legal Officer Geraldine Baniqued in response to the questions raised by Vice Mayor Alvin Fernandez including about rules governing determination of qualification of bidder based on the BOT law, the absence of approval of the City Engineer of the technical plan, non-compliance with requirement of endorsement from the Regional Development Council, and failure to conduct public consultation and hearing.

Earlier, Vice Mayor Fernandez had presented a letter of Director Leonardo Quitos, RDC vice chairman, stating that the submitted RDC Executive Resolution No. 66 was only a draft prepared by its secretariat for ratification by ExeCom when it convenes, contrary to claim of Baniqued that the document submitted was formally endorsed.

The approved ExeCom resolution will still be submitted to the RDC for ratification en banc when it convenes. But Guadiz said draft Resolution No. 66 of RDC ExeCom dated November 28, 2006 was already a declared intention of endorsement of the project that met the requirements under the BOT law and should be treated as is.

At the same time, Guadiz, on interpellation from Decano, admitted he erred when he told the media that based on the documents he had received, it was a Maximilliano Tan who was the head of the bidding committee. The chairman was City Administrator Rafael Baraan- AQL

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