Bacolod Real Estate Development Corp. president Simplicio Palanca brushed aside the city government's proposed amount of increase in compensation to the city for the operation and management of the port, and maintained that they could pay only P1 million a year, to be adjusted every five years.

The city government had earlier said it will ask for P17.5 million annually, 21.5 times the original annual rental of P800,000. The amount was based on the gross income of the port from the records of the Philippine Ports Authority.

But Palanca said that, in five years, the increase should only be 25 percent of the P800,000 annual rental.

He said the increase should be based on prevailing economic conditions, adding that the Gross National Product of the country increases by three to five percent a year.

"Based on the GNP, five percent multiplied by five years is only 25 percent and 25 percent of P800,000 is only P200,000," he said.

BREDCO, through its representative, Roseller Maalat, had proposed to the city an increase to P1 million a year, to be adjusted every five years. He said that, based on the Build-Operate-Transfer Law, BREDCO should first be allowed to recover, as it had reclaimed the land and built the port.

CITY SHOULD PAY - PALANCA

Palanca said the city is proposing an increase of P17.5 million based on the gross income of the port although it has not invested a single centavo. In business there should be a return of investment but the city has "zero" investment, he said. If they want the port, they should return our investment and we will invest in other places, he added.

'SQUABBLES' BLAMED

Palanca also said the city should pay BREDCO P1.9 billion of its actual investment including P700 in insurance and loans amounting to about P2.1 billion.

He said it was because BREDCO had been subjected to political squabbles since the past administrations that it was not able to perform its obligations to the city.*CGS

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