Cebu Capitol: Review ongoing unfavorable contracts

The Cebuanos in the province have spoken.  As the results would show, they want change.  Well, of course, for the better.  Though such change is long overdue, it provided us the opportunity to know, finally, where our taxes went.  Thus, with this resounding success of the Davide-Magpale tandem, hopefully, more wrongdoings can be uncovered and straightened. 

It can’t be avoided though that in taking this initiative religiously, the Garcia’s political clan and its supporters may hail this as political vendetta.  However, we are quite certain that the overwhelming victory of the Davide-Magpale tandem provides the compelling rationale of doing it vigorously.  

While it is true that we have pursued and successfully filed cases on the Balili property acquisition and reclamation activities, the fact remains that the Garcia administration had entered into several agreements or contracts that have grossly long-term repercussions.  Therefore, on top of the potential cases that maybe filed due to the grossly overpriced construction of the Cebu International Convention Center (CICC), the operational and management aspect of the facility which is outsourced must be reviewed meticulously. 

To recall, after summing up all costs incurred in the construction of the CICC, reportedly, the amount has now reached almost P1 billion.  Knowing fully well that the lot is owned by the City of Mandaue, then, such costs represent construction materials/supplies and labor alone.  Moreover, as it was poorly designed, operating costs, like electricity, have ballooned as the air conditioning system is centralized (as if CICC is a department store).  Farcically too, water consumption is ridiculously high as the CICC purchases water (not MCWD) at P60 per cubic meter. 

Worst, these operating costs, irregular and unreasonable they may seem, were incurred under the nose of a supposedly known management company named Philippine Exhibits and Themeparks Corporation (PETCO).  Already receiving millions in management fees, they never had the audacity to take the initiative of rectifying suspended Gov. Gwen Garcia’s very obvious operational lapses.  Thus, obviously, there is that need to review the management contract with PETCO and the supply contract with the water supplier diligently.

On the other hand, despite the filing of cases related to the acquisition and reclamation (or restoration as suspended Gov. Garcia wanted it called), we can’t keep mum on the other concerns this ill-acquired property has brought.  To recall, though suspended Gov. Garcia concocted many uses (like an economic zone) on the property to bail her out of trouble, she must have forgotten that her early pronouncements have been for the pond to be used as dumpsite for KEPCO’s coal ash.  Inarguably so, because if she can further remember, she also offered the same controversial Balili property in barangay Tinaan, Naga City to Korea Southern Power Co., Ltd. (KOSPO) as site for another coal-fired power plant in Cebu.  Among others, Gov. Gwen Garcia emphasized that the Balili property is appropriate because it is right along the shoreline and, thus, suitable for coal deliveries by huge cargo vessels. 

Furthermore, in trying to appease critics on issues of return on investments, the governor then bragged about a down-payment of US$500,000.00 from KEPCO.  She further declared that KEPCO will be paying the provincial capitol US$1.00 per ton for dumping coal-ash (probably, the bottom ash) into the watered portion of the site, a far cry from the global rate of between US$10 and US$15.  This glaring disparity (between US$9 and US$14 per ton) is a direct insult to the Cebuanos’ intelligence.  Thus, grossly disadvantageous to the Cebuanos, there is an apparent need to review this agreement or contract with KEPCO thoroughly.

Indeed, battered and mangled, the CICC and Balili property are every square inch a fiasco.  Both gained and drained, the possibility that some money went to some private pockets out of overpriced operating costs (such as water and management fees of CICC) and grossly underpriced dumping fees (KEPCO’s coal ash) cannot be discounted. 

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