CH to import P70.5M equipment from Japan

CEBU, Philippines - The Cebu City Government will be purchasing over P70 million worthy of brand new heavy equipment to be imported from Japan.

The equipment is expected to arrive in four months if all goes well in the preparation of documents.

The city is purchasing two units of six-wheeler Manlift for P9.6 million, seven units of six-wheeler compactor for P38.2 million, one unit of Mini loader for P2.3 million and one unit of Bulldozer for P20.5 million.

All equipment will cost the city government P70.5 million which was budgeted under Supplemental Budget No. 5 last year and the 2011 Annual Budget.

Last Wednesday, the City Council has already authorized Mayor Michael Rama to apply for the authority to import with the Bureau of Import Services and apply for tax exemption with the Department of Finance.

Rama was also authorized to open a foreign letter of credit amounting to P70.5 million with the Land Bank of the Philippines – Plaza Independencia branch.

A Letter of Credit is a bank transaction method for the release of payment once the goods or services are delivered.

It assures the supplier that he will be paid on-time since the purchaser has available money in the bank to make the payment. It is usually a requirement when importing products.

The government awarded the bidding to local distributors but the equipment will have to be imported since there are no stocks in the yard.

Suppliers also take advantage of coursing the importation through the government to avail of exemption from taxes.

The city government wants to purchase brand new equipment to ensure the equipment will be in its best condition.

The equipment shall be used for garbage collection and engineering works. — (FREEMAN)