Madridejos VM backs BOT for port project

CEBU – Madridejos town Vice Mayor Doroteo Salazar is opposing the cancellation of the build-operate-transfer contract agreement between the town and a contractor for the construction of a port, saying it might leave the municipal government open to civil and criminal charges.

Last Sept. 22, the municipal council approved a resolution that terminated the BOT agreement between the municipality and the Madridejos Development Inc. for the construction of the Kaongkod Port that dates back February 13, 1999.

“My opposition to this measure is not because of its passage in my absence but to protect the Sanggunian and the municipality of Madridejos from possible civil and criminal liabilities for procedural and legal violation of the laws,” said Salazar.

The project started during his first term as mayor in 1995 as part of his massive rural development program.

Salazar said during his term, the town earned three major national awards —the Clean and Green Award for cleanliness and tree planting, the Gawad Galing Pook Award for sports development and the Rural Project Development Award for local implementation of infrastructure projects.

The rural project development award was for the Kaongkod Port, which is under the BOT law, Salazar said.

When the project started, Salazar said he put up advertisements inviting proponents to invest in the Kaongkod Port.

But since there were no takers, he invited some friends to invest in the port and the MDI was formed.

With no other bidder submitting proposals for the project, Salazar said the BOT law authorizes the town to undertake the projects under a negotiated contract when there is only a single bidder.

The project only stopped when Salazar ran for Congress in 2001. The succeeding administration of former mayor Lety Mancio failed to finish it because of the failure to comply with its contract obligation forcing the MDI, under the contract, to suspend the project.

Incumbent Mayor Salvador Dela Fuente approved the termination of the contract because MDI failed to obtain liability insurance, motor vehicle liability insurance and workmen’s compensation insurance.

The council also claimed MDI has been dormant for more than five years and has automatically been dissolved as a corporation.

The council cited the Article V, Section 3 of the contract that provides the parties have the right to terminate the contract.

But Salazar said the move might leave them open to lawsuits and that the port should be given a chance as ports give economic progress to any municipality.

“A town without a port looks impoverished compared to one who has the facility,” he said.

Last July 16, MDI sent a letter to Dela Fuente expressing to complete the project but Salazar said the mayor did not entertain the letter reportedly for “personal interest”.

Salazar also accused the council of lying when they said that MDI was de-listed from the records of the Securities and Exchange Commission and presented a copy of a certification proving MDI is still registered with the commission.

He also said the council failed to notify MDI of the termination of contract and reasons for this.

Salazar quoted Sec. 12.17 that in the event of the contract termination or rescission, the proponent will be reimbursed its actual expenses, although he did not mention the amount.

Salazar also asked the Provincial Board to declare the resolution of the council as illegal and of no force and effect.

PB Member Peter John Calderon, chairman of the PB committee on laws, said he would invite the members of the council, as well as Salazar and Dela Fuente, for a hearing on the matter before rendering a report to the Provincial Board. — Garry B. Lao/BRP (THE FREEMAN)