IN convention center, hotel groundbreaking set this month
THE GROUNDBREAKING for the proposed hotel and convention center to be constructed at Barangay Balacad, Laoag City has been set for November after the P409 million contract was awarded to Metropolis Construction Inc. (MCI), which won the bidding process undertaken by the provincial government. Earlier, the Ilocos Norte provincial government, under the administration of Governor Ferdinand R. Marcos Jr., entered into a memorandum of agreement (MOA) with the Development Bank of the Philippines (DBP), with the latter granting a credit line of up to P475 million for the project. The said hotel and convention center has been one of the dream projects of the governor which he hopes to realize before his third and final term expires next year. The said loan has a fixed interest rate of 10 percent per annum with a grace period of three years. In the same loan agreement, the PGIN has agreed that its internal revenue allotment (IRA) share, which is currently deposited at the Land Bank of the Philippines, would be re-deposited to DBP as collateral. Provincial government officials however maintain that the province’s IRA share would not be compromised as they say that DBP only wanted to have a guarantee that the loan obtained would be re-paid as agreed upon in the MOA. They added that DBP would not necessarily withhold the province’s IRA share. Of the P475 million loan taken out by the provincial government, only P409 million will be utilized for the project construction, as specified in the bidding contract entered into by MCI, represented by its manager Benedicto D. Sy, and the PGIN, represented by Marcos. When asked about the remaining P66 million from the DBP loan, which came about after the project cost was lowered by 14 percent from its estimated cost, Sangguniang Panlalawigan (SP) member Da Vinci M. Crisostomo, chair of the board’s appropriation committee, admitted that he is not aware whether the province would use it or return it to DBP. “To be candid, kinapudnuna, diak pay ammo no mausar wenno maipulang,” Crisostomo said adding that the funding requirement for the project is a credit line and the release of the amount is based on the percentage of accomplishment of the project, which would entail voluminous documents before getting the partial amount until it is completed. According to Crisostomo, DBP will release an initial 15 percent of the total project costs for mobilization purposes. He further stated that for transparency’s sake, DBP and the provincial government maintain an open account which is available for public scrutiny. Based on records, the 2007 annual budget for the provincial government has a total of P476,314,091, an increase of approximately P34 million compared to last year’s budget. With the project’s groundbreaking scheduled this month, the project is expected to be completed by 2008. After a moratorium of three years or in 2011, the PGIN will start paying its loan to DBP. With this time being given to the provincial government, Crisostomo is optimistic the project would bring in more development and opportunities for the province. Meanwhile, SP member Ma. Elena M. Nalupta lobbied that MCI use local laborers for the construction of the project to generate more jobs in the province instead of hiring workers from outside Ilocos Norte. Nalupta added that in an effort to increase cash circulation in the province, the materials needed for the project should also be bought from local suppliers. Leilanie G. Adriano
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