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Bacolod City, Philippines Monday, March 13, 2006
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Mayor endorsing to SP
BREDCO port takeover
IT'S OUT OF THIS WORLD: PALANCA

BY CHRYSEE SAMILLANO

Bacolod Mayor Evelio Leonardia said he will endorse to the Sangguniang Panlungsod today the recommendation of the city negotiating panel to take over the operation and management of the Bacolod port.

The members of the Bacolod City negotiating panel had recommended the takeover of the port operation and management by the city government after the renegotiation between the city the Bacolod Real Estate Development Corp. failed.

No agreement was reached between the city and BREDCO for the increase in compensation for the management and operation of the port after 60 days of renegotiation from January 4 to March 6. The city proposed the amount of P17.5 million from the present P800,000 annual rental that BREDCO had been paying for more than 10 years now. However, BREDCO wants to pay only P1.4 million a year.

The recommendation of the city negotiating panel dated March 7 was signed by Councilors Al Victor Espino, Napoleon Cordova, City Legal Officer Allan Zamora, Secretary to the Mayor Roger Balo, City Treasurer Florentino Guanco, City Enginer Loreto Dilag and City Planning Officer Lemuel Reynaldo. Those who did not sign were Councilors Ana Marie Palermo, who said she will submit a report to the Mayor, and Councilors Arturo Parreņo and Elmer Sy.

Leonardia said he will write the SP members today of the result of the renegotiation and will endorse to them the 16-page report and recommendation of the city panel, which is consistent with his Oct. 12, 2005 decision, that, "Should there be failure of renegotiation within the 60-day period, then the takeover option should be vigorously pursued by the city."

Leonardia said that before the takeover is undertaken, he will recommend that the SP pass an appropriate city ordinance to include policy guidelines for the proper and smooth takeover of the operations and management of the port.

The proposal to take over the port operations and management is anchored on the collated findings and evaluations of the SP and the Mayor's Office that BREDCO had committed violations of its contract with the city, including C.O. 157 and the 2000 memorandum of agreement entered into and between the city, BREDCO, and the Philippine Estates Authority. The review of the increase in the annual lease rental of BREDCO, as provided under the Comprehensive Revised Reclamation Agreement, was initiated by the SP sitting as a committee of the whole in 2005. The SP eventually referred its findings to the Mayor, who created the CRRA executive working group to look into the violations allegedly committed by BREDCO and other related matters.

Meanwhile, Palanca said whatever is the decision of the city, it should be in accordance with the law. He said speaking about a takeover is "confusing and out of this world." If the city is thinking about the interest of the public, it should not take drastic actions like the takeover of the port. He also claimed that even the national government believes that business is better managed by private companies.

Our recourse is to protect our right, Palanca said.

Emilio Jison, Top Harbor International Inc. managing director, said they will wait for the official copy of the recommendation of the city panel and call for a meeting on what steps to take. He claimed that the city does not own the port because it belongs to the national government.

Leonardia said he is sure of his position and that his decision was made with the best interest of the city and its people in mind.*CGS

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