Bacolod City Legal Officer Allan Zamora yesterday said the Land Bank of the Philippines will not oppose it if the city will look for another bank to secure a loan for the construction of the Bacolod City Government Center.

Zamora said they discussed the matter with LBP officials in Bacolod during a recent conference that was also attended by Mayor Evelio Leonardia and City Administrator Lorendo Dilag. He said that during the meeting, LBP was informed of the request of Hilmarc's Construction Corp. for the release of the 15 percent mobilization fund for the construction of the project.

LBP informed them that the papers, especially the complaint, which was immediately furnished them by lawyer Rolando Villamor, is still with their Legal Department in Manila, Zamora said.

He said LBP Bacolod is still waiting for the decision of their officials in Manila on the request for the release of the mobilization fund. Zamora said LBP did not oppose when informed of the possibility that the city may look for another bank, if there is unnecessary delay in the reply of LBP Manila on the request of HCC, since no funds had been released yet.

He pointed out that there is a condition in the loan agreement between the city and LBP that if there is a complaint filed, the bank will not release the loan.

A complaint seeking the declaration of nullity of the contract between the city and HCC was filed last month by a local group against the city government, the Mayor, HCC, the members of the Bids and Awards Committee and the Sangguniang Panlungsod members.

Meanwhile, Zamora said there is also a possibility that HCC might file a suit against the city if there is a delay in the release of the mobilization fund since it has already complied with its obligation to the city.

Under the contract with HCC, the city will release the mobilization fund to HCC if the contractor puts up a surety bond, he said.

Zamora said HCC already wrote the city and attached its surety bond as a guarantee that it will continue the project once it is given the mobilization fund.

He said HCC had also delivered over P30 million worth of materials which means it is decided to purse the project even without receiving the mobilization fund yet.

If HCC gets the Environmental Compliance Certificate, its operation will go full swing, he added.

Zamora said the city has a standing offer with the Philippine National Bank and the decision to pursue a loan with this bank will depend on the Mayor.*CGS

back to top