Bridge board eyes suit versus ad firm for breach of contract

The Mactan Cebu Bridge Management Board (MCBMB) is planning to sue an advertising firm for breach of contract over the lease of 130 lampposts at the two Mactan bridges.

Governor Gwendolyn Garcia, chairwoman of the MCBMB, told reporters last week that the board would file a case against the APM outdoor advertising firm for noncompliance with its lease contract with the board.

Last year, APM won the bidding to lease the 130 lampposts at the First Mandaue-Mactan and the Marcelo Fernan bridges to be utilized as advertising space when it quoted the highest bid of P211,000 monthly rental fee, almost twice the required minimum bid of P110,000.

It, however, withdrew from the contract last July 17.

Garcia said despite the revocation of the contract with the APM, they are entitled to collect the P880,000 rental fees that is due them within the period that the advertising firm was expected to carry out what was stipulated in the contract.

The City Advertising Ventures Corp., a multi-media advertising agency based in Mandaluyong City, won the re-bidding conducted last month. In the lease contract signed on October 2, City Advertising is obliged to pay P110,000 monthly rental fee to the MCBMB through the Provincial Treasurer Office.

The contract also provides that the City Advertising should deposit P220,000 to the MCBMB upon the signing of the contract as security for any damages and in the event that the firm would violate the terms and conditions stipulated in the contract.

However, the amount will be returned to the firm without interest during expiration of the lease period providing it has no outstanding accounts in the monthly rental or other obligations with the board.

The MCBMB's contract with City Advertising takes effect on November 1 and will cover a period of one year.

The lampposts in both bridges are good advertising tools, especially when Cebu plays host to the 12th Association of Southeast Asian Nations Summit in December. - Cristina C. Birondo