CEBU, Philippines - The Cebu Provincial Board is set to deliberate today whether or not to authorize the proposed borrowing of the provincial government in the amount of P200 million to finance the acquisition of various heavy equipment.
PB Member Miguel Antonio Magpale, chairman of the committee on planning and development, will present today his report on the proposed ordinance authored by PB Member Peter John Calderon embodying the said authority.
Though it is calendared in today’s PB session, Magpale refused to divulge the committee recommendation of the said proposal.
Included in the P235.4 million supplemental budget, the PB approved Thursday the appropriation of P198 million as part of the P250 million budget for the purchase of heavy equipment.
Capitol inked in July a loan agreement with the LandBank of the Philippines which signaled the start of the bidding process for 11 types of heavy equipment.
Provincial Budget Offi-cer Danilo Rodas explained that the approved P198 million appropriation is a re-quisite for the release of the money borrowed from LBP and the awarding of contract to the winning bidder for the supply of heavy equipment.
Rodas said the appropriation ordinance is also required for the province to shell out funds to pay the loan. The province initially set aside P50 million for the heavy equipment.
The result of the bidding of the Bids and Awards Committee is still pending before the PB Ad-Hoc Committee chaired by Board Member Grecilda Sanchez-Zaballero for review before the resolution authorizing the award is passed.
However, Governor Hilario Davide III had already signed the notice of award to ConEquip Philippines Inc. as the bidder reportedly with the lowest calculated and responsive bids for the supply of the equipment with P250 million total bid.
Provincial Treasurer Emmanuel Guial earlier said the Cebu provincial go-vernment will not use the P290-million budget surplus from last year to purchase heavy equipment as doing so would reportedly put the province’s financial status in jeopardy.
He explained that the province’s surplus in 2014 has also been earmarked for other priority projects of the administration.
He made this clarification after receiving queries as to why the province had to borrow money when it has savings in the previous year. (FREEMAN)