Permit woes delay Bagsakan project

CEBU, Philippines — Permit issues have been cited as a primary cause of delays in the completion of the P14-million Bagsakan Food Production Center at the South Road Properties (SRP), leading the Department of Agriculture (DA) to demand a refund from the Cebu City Government.

This was revealed on Wednesday during the executive session where the City Council discussed the suspension and delays of the project. The executive session was prompted by a resolution filed by Councilor Philip Zafra.

Former City Agriculture Department (CAD) head Joelito Baclayon said he initiated the project in 2020 during the pandemic. The Bagsakan Center was among several projects under the Bayanihan 2 funding, totaling P38 million. Other projects included a greenhouse, a cattle feedlot, and urban agriculture initiatives.

Baclayon explained that the funding for the Bagsakan Center was downloaded to the Cebu City Government in 2020 but was not utilized due to incomplete documentation. Delays stemmed from noncompliance with building permits, site relocation issues, SRP clearance, hauling permits, and electrical connection requirements.

According to Baclayon, the Bagsakan Center was envisioned as a wholesale trading hub for farmers, allowing them to sell their produce at no cost. However, since the project was funded by the national government, unutilized funds were subject to reversion. Of the total P38 million grant, P27 million was returned in 2022 due to non-utilization.

In 2021, Baclayon said all necessary documents for the project were completed, but his tenure as CAD head also ended with the passing of then-mayor Edgardo Labella. The Program of Works and Estimates (POWE) was finalized in 2022, and the project was awarded to a contractor under the supervision of the Department of Engineering and Public Works (DEPW).

Baclayon noted that a notice to proceed was issued on March 9, 2022, but work was stalled in 2023 due to unresolved permit issues. As of 2023, the project was 81.6% complete.

Councilor Jerry Guardo also raised concerns about the SRP location, stating that the distance from farms—especially in the north district—posed a logistical challenge for farmers. However, Baclayon clarified that the Bagsakan Center was intended to be a central hub for agricultural products from Cebu City and neighboring towns. He added that the facility was also envisioned as a revenue-generating trading center.

Guardo, after inspecting the site, observed that much of the construction was already complete and asked if it was possible to already operate the center.

Baclayon, however, stressed that the facility could not operate without a turnover certification and full completion. He also disclosed that a request was made to the DA to return the funding, but this was denied since the implementation phase had already begun. Instead, the DA directed the city to refund the money.

“Dili man sila maka-close sa libro didto,” Baclayon said, referring to the DA’s requirement to settle the financial accounts.

“It is considered unspent,” he added, emphasizing that the DA mandates grant utilization within a specified timeframe.

DEPW representative Engr. Leova Gabriel revealed that the project had been awarded to NRMM Construction and Development Corporation. Originally slated for completion on October 11, 2022, work was suspended due to the absence of required permits. Construction resumed only on September 8, 2024. She confirmed that P11 million had been spent so far, with the remaining work focusing on the comfort room and office.

Francis Ponce, a representative of the contractor, cited financial constraints as a major hurdle. He said that only P12.6 million of the project’s P13.9-million cost had been released, resulting in a P1.3-million shortfall.

Despite this, Ponce assured the council that the project would be completed within the year.

CAD Officer-in-Charge Arleigh Gesta informed the council that they were requesting the P1.3-million shortfall through Supplemental Budget 2 to ensure project completion. However, he also noted that the DA had sent another letter demanding a refund of P12 million.

The council assured that a progress report could be submitted to justify expenses and possibly prevent the refund demand from the DA. — (FREEMAN)