To acquire heavy equipment: PB gives green light for P200M Capitol loan

CEBU, Philippines - The Cebu Provincial Board has given Capitol the go signal to borrow P200 million to finance the acquisition of various heavy equipment.

The PB approved the recommendation of the committee on planning and development chaired by Board Member Miguel Antonio Magpale approving the proposed ordinance authored by Board Member Peter John Calderon authorizing the proposed borrowing.

“The proposed ordinance authorizing the borrowing of the provincial government of Cebu to finance the acquisition of various heavy equipment and confirming, approving and ratifying all previous representations, acts and warranties and all terms and conditions of the loan is well within the ambit of the Sangguniang Panlalawigan of Cebu to legislate, and is considered with great weight and respect by this Committee having observed that requirements are complied with,” read the committee report.    

The members of the committee include Board Members Arleigh Jay Sitoy as vice chairperson, and Jude Thaddeus Sybico, Grecilda Sanchez, Calderon and Christopher Baricuatro as members.

However, Committee Report No. 69-2015 disclosed that those who attended in the review of the proposed ordinance were all representatives of Sanchez, Baricuatro, Calderon, Sybico and Magpale. Also present was Jonie Montenegro of the Provincial Planning and Development Office.

Last Thursday, the PB passed the P235.4 million supplemental budget which includes appropriation of P198 million as part of the P250 million budget for the purchase of heavy equipment.

Capitol inked in July a loan agreement with the Landbank of the Philippines which signaled the start of the bidding process for 11 types of heavy equipment.

Provincial Budget Officer Danilo Rodas explained that the approved P198 million appropriation is a requisite for the release of the money borrowed from LBP and the awarding of contract to the winning bidder for the supply of heavy equipment.

Rodas said the appropriation ordinance is also required for the province to shell out funds to pay the loan. The province initially set aside P50 million for the heavy equipment.

The result of the bidding of the Bids and Awards Committee is still pending before the PB Ad-Hoc Committee chaired by Board Member Grecilda Sanchez-Zaballero for review before the resolution authorizing the award is passed.

However, Governor Hilario Davide III had already signed the notice of award to ConEquip Philippines Inc. as the bidder reportedly with the lowest calculated and responsive bids for the supply of the equipment with P250 million total bid. (FREEMAN)