A major between Dagupan City Mayor Benjamin Lim and Vice Mayor Alvin Fernandez looms ahead over the decision of the city hall to award a build-operate-transfer (BOT) project to a private developer without the required prior council resolutions supporting it.

Of late, City Administrator Rafael Baraan already rejected the proposal of Vice Mayor Alvin Fernandez that a re-bidding of the proposed project at the Magsaysay Park as a tourism complex be conducted, maintaining that the bidding process conducted had no defect.

Baraan thrashed the vice mayor’s recommendation in his reply to the series of questions raised by the latter regarding the Magsaysay Park project which was initially reported to have been already awarded by the city to the Metrostate Realty Development Corporation, headed by Architect Mark Joseph Siapno. (Read more on the status of Metrostate Realty in a separate story).

But in an apparent reversal of its original position, Baraan said the awarding of the contract to Metrostate Realty was not final indicating that the Special Bids and Awards Committee (SBAC) proposal was merely recommendatory since the results of the bidding process are not yet final.

The city administrator said in the case of a BOT, while the SP has the power to review the proposed BOT contract, the BOT contract cannot be finalized until the bidding process is completed adding that the terms and conditions in the contract depend on the results of the bidding.

“Mayor Lim can submit a BOT contract for SP review only upon completion of the bidding process,” said Baraan.

“Therefore, technically, the SP exercises the final say as to the terms and conditions, including the lease rental rate, and the duration of the lease, as long as the final terms and conditions are mutually acceptable, fair, and reasonable,” Baraan added in response to Fernandez’s query “if SP resolution 5406-06 allows the bidding of a BOT, and on what basis was the bidding conducted, where the bidders based their bids, on, and also when did the bidding process start.”

To Fernandez’s query if the plan for the project was approved by the City Development Council (CDC) and if the Sanggunian authorized the BOT project, Baraan said the CDC unanimously approved the Redevelopment of the former Magsaysay Park as a commercial/tourism area as a priority project on May 3 this year.

The CDC reportedly obtained the approval of the Regional Development Council per its Executive Committee Resolution No. 66, S. 2006. All projects costing more than P50 million require the approval of the RDC.

On whether the SP authorized the BOT project, Baraan merely said the Sanggunian, thru SP resolution No. 5406-2006 adopted the project as a priority program of the city government.

Toward this end, he said Mayor Benjamin Lim had to find ways and means to fund and implement the project immediately.

“Because of the city’s limited funds, and since our bank loan exposure has almost reached maximum allowable limits, a BOT scheme appears to be the most viable option for the city,” Baraan explained.

On the vice mayor’s question whether the technical plan was in existence before the bidding and who did the plan, and why the SP was not part of the process and authorization, Baraan said that with inputs from the mayor, and assistance of the City Planning Department and the City Engineer’s Office, the SBAC, Technical Working Committee and secretariat, prepared Bid/Tender Documents, terms of Reference, and General and Detailed Scopes of Work prescribed by the city for the project.

He clarified that the SP was represented in the process by Councilors Michael Fernandez (as chair of Ways and Means) and Vladimir Mata, (as Minority Floor leader) as provided by law but Baraan did not state categorically that the city council had, indeed, passed the resolution approving the technical plans and the terms for the bidding.

On the question of how the P84 million peso investment was determined, Baraan said the Technical Working Committee adopted the existing construction industry standards for cost per unit floor area in arriving at a minimum capital investment of P83 million for a two-storey structure cum roof deck with a total floor area of 3,925 sq. meters, including cost site of development.

To the vice mayor’s query if “it would be wise to consult the public as regards the lease of the Magsaysay park for 25 years to another BOT operator”, Baraan said “The law neither requires public consultation, nonetheless, the CDC broadly represents the public of Dagupan City and it approved the project”

Baraan said the SP resolution 5406-06 does not disallow bidding of BOT projects but the bidders submitted their Letters of Intent (LOI) to participate in the bidding last May 16, this year.

Meanwhile, Councilor Teofilo Guadiz III postponed the continuation of the committee hearing last Thursday after Baraan failed to submit the additional documents needed for the hearing. – AQL

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