CEBU – The contractor of the Kaongkod Pier and Roro Port in Madridejos has filed a civil case seeking for the issuance of an injunction and damages before the Regional Trial Court yesterday against the municipality of Madridejos led by its incumbent mayor and the municipal councilors for terminating the contract on a port project that is already being used.
Madridejos Development Inc (MDI), the contractor of the Kaongkod Project that was built under a build-operate-Transfer (BOT) scheme as agreed by the contractor and former mayor Doroteo Salazar by entering into a contract in 2001.
Named respondents were Madridejos Mayor Salvador dela Fuente and Councilors Delfin Santillan, Isaias Bacolod, Bernabe Compra, Christy Chavez, Randolf Rivera, Recline Asentista and Doroteo Dorimon.
In the complaint, MDI said that when Salazar became mayor in 1995, the latter took on a “massive rural development program” for the town in his aim to develop infrastructure projects.
Salazar advertised the construction of a port for over a year, but there were no takers. MDI took on the challenge and developed the project under the BOT scheme.
MDI had invested more than P17 million for the Kaongkod Port.
Under the agreement, it was stated that the LGU shall provide and surrender the possession of the site for the port facility to MDI and the corresponding right of way of the roads leading to and out of the pier area.
But when Salazar’s term ended in 2001, Lety Mancio took over as mayor but was reportedly unable to fulfill the contract obligations.
MDI reportedly anticipated this and wrote Salazar, telling him that they would suspend the project if the government continues to fail to comply with the contract terms.
When Mancio’s term ended, Dela Fuente became Madridejos mayor.
The contractor wrote Dela Fuente last July 16 proposing a scheme for the completion of the project.
Dela Fuente reportedly ignored the letter and, instead, issued a resolution together with the accused officials, to unilaterally terminate the contract with MDI.
At that time, Kaongkod Port was already partly operational and the municipal government was already collecting a P40,000 fee from the port facility every month.
Because of the matter, MDI has asked the court to issue a temporary restraining order directing the defendants to cease and desist from terminating the concession agreement and taking over the Kaongkod Port.
They have also asked the court to declare null and void the resolution that it issued on the cancellation of the contract sought for P200,000 in moral and exemplary damages, P80,000 in attorneys fees and P30,000 in litigation and consequential expenses and the cost of suit. — Jasmin R. Uy/WAB (THE FREEMAN)