Hilmarcs Construction Corp. is way ahead of schedule in the construction of the Bacolod City Government Center, its legal counsel Rogelio Pieg told the DAILY STAR yesterday.

Peig, who was in Bacolod City Saturday, said that under the work schedule approved by the city, HCC is supposed to accomplish .95 percent of the work in the first 30 days. He said that as of Saturday, they have accomplished 3 percent of the work, although the building permit was only issued to them two weeks ago.

Peig said he is confident that they will be able to finish the project within the deadline given them. However, he said the weather condition is one factor that can also affect their work.

HCC was given 18 months to complete the construction of the BCGC.

Peig said they have not yet sent the city a billing for the second release of the funds for the construction of the government center project. Councilor Al Victor Espino, chairman of the Committee on Finance and Appropriation, yesterday said he is confident that the city has the money to pay HCC if it requests for the second release of the fund. He said they are in the process of determining the source of funds. "But I am confident we have the money and can come up with a good amount if we have to fund the project internally," he added.

Espino said all funds that are allocated for the government center project are not funds derived from projects that they have already appropriated for 2007. These are all new funds so he believes the city will not be in anyway affected, he said.

However, the city will have no new projects except for those under the Annual Investment Plan under the General Fund, since their capacity will be diminished.

Espino said if the Mayor intends to fund the project from the city's internal funds without utilizing its lines in the banks which are pending, this mean savings for the city in terms of interest payments.

He said the city has already saved in terms of the interest in the initial payment of the mobilization fund amounting to P59 million.

Espino said that private business, even SM Prime Holdings Inc. which constructed SM City Bacolod, also borrowed, but from their own funding institution.

He said he believes the case filed against them by the Kabalaka group involving the government center project, which is still pending in court, will be dismissed soon, based on the merits of the case.

He also said he believes 99 percent of the issues involving the project are political like what had happened in the case of the loan and the attempts to stop it, except for the loan with PNB.

Espino said that, aside from Bacolod, there are nine other local governments that have not yet been released their loans by PNB. He said PNB has offered the city a rate of 8 percent per annum while LBP has offered 10 percent.*CGS

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