SRP access road Council says contractor entitled to P29 million

CEBU, Philippines - The contractor of the Mambaling access road in the South Road Properties will now be able to collect its claim for price escalation amounting to P29 million after the Cebu City Council allowed it.

The council met with representatives of TOA last Monday where the company presented the grounds for its claim, which convinced the council.

Vice Mayor Joy Augustus Young said that the council saw that the P29 million is the city’s obligation that must be paid for the service rendered by TOA.

“It seemed to us that it’s really for obligation plus there was already a COA report, so we will just have to tell the executive that they can proceed with the payment,” Young said.

The payment to TOA will be included in the next Supplemental Budget which is SB No. 2 that is due for submission to the council.

Young, however, explained that neither the Executive Department nor the mayor needed their approval to pay the contractor.

“We just conducted an executive session to determine whether if it’s an obligation or not, or whether we will allow the city to pay that. But it doesn’t mean we have to approve it,” Young said.

Mayor Michael Rama, during his regular news conference yesterday, was infuriated by reports that TOA met with the council.

The mayor said, the council has no authority over the issue because it is an executive matter, which Young confirmed.

“We’re not questioning his authority, the problem with Mike is that he doesn’t want us to get involved. We were partymates before. Even Mayor Tom before, he consults the council on major decisions of the city,” Young said.

TOA constructed the Mambaling access road over a decade ago for the original price or P399 million.

The implementation was not started immediately because the notice to proceed was delayed so by the time the TOA started the project, the prices of materials had already escalated.

TOA did not immediately collect their claim after the project was completed in 2004 because at the time, the SRP was not earning yet.

Cebu City south district Rep. Tomas Osmeña objected to the payment to TOA because the former mayor said that TOA’s works were allegedly substandard that the city government had to spend another P30 million for its restoration not long after the project was completed.

But Young said that the road was damaged only after the warranty period lapsed so the contractor was no longer liable for it. –(FREEMAN)