Malimgas posts P15.8M loss in 2009
FOR the 5th year since it opened, the Malimgas Public Market in Dagupan City continues to operate at a loss.
In a report to the city council last week, City Treasurer Romelita Alcantara and City Accountant Teresita Manaois said the supposedly flagship project of the city incurred a net loss of P15.8 million in 2009.
Manaois reported that the total income of Malimgas last year was about P24 million while operating expenses reached almost P40 million.
The expenses include cost of personal services at P247,516; water service, P1,800,295; electricity, P3,404,063; Maintenance and Other Operating Expenses, P18,978,409; and financial expenses for the loan amortization, P20,552,795.
The construction of the Malimgas Public Market was funded from a P281 loan obtained by the city from the Land Bank of the Philippines on March 26, 2004. The loan is payable in 15 years.
From January to May 2010, the net loss stands at P1.5 million from an income of P9 million and expenses worth P10.5 million.
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Alcantara pointed out that since the market became operational, many stalls remain unoccupied, with at least 25 per cent in the first floor and 60 per cent in the second floor having no tenants.
The third floor of the building, designed for pay parking, has never been utilized and thus has not generated any revenue.
Meanwhile, Manaois reported that to date, the city has already managed to pay the principal of P58.284 million and P134.175 million in interest.
Manaois and Alcantara also said that the P37.080 million the city borrowed from Land Bank for the purchase of a dredging machine is now almost fully paid with just a P1.711 million balance remaining.
The city also borrowed P21.770 million from the bank to finance various projects using the Internal Revenue Allotment (IRA) that will still accrue to the city.—LM
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