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Bacolod City, Philippines Tuesday, October 11, 2016
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IPM contract - 2


Although it is more than a month since the IPM has been awarded the contract to collect and dispose of the garbage of Bacolod, there are still many people calling the radio stations and reporting that their trash had not been collected for days.

Then there is a report that several workers of IPM had not been paid their wages and some payments were reduced by the management without notice to the workers. This is, of course, an internal matter but with possible problems for the city in the event that the workers will sabotage the IPM operations by slowing down their work. They can also just walk out without informing the company.

There are also reports of IPM workers being rude. These workers are probably from other provinces, or they are Tagalogs, or maybe those who were not paid as promised. But for whatever reasons IPM is not giving the people of Bacolod a reason to overlook their shortcomings.

There is a condition that Councilor Ricardo Tan has inserted in the approval of the contract with IPM. The condition states that “the Solid Waste Management Office and the Department of Public Services (DPS) shall submit a monthly monitoring report informing the SangguniangPanlungsod of the activities and accomplishment ( sic ) of the contractor.”

It is more than a month that IPM has operated and it is incumbent upon the SWMO and the DPS to submit a report. Have these offices submitted a performance report? If they have done so then we will know the reasons for the deficiencies during their first month of operation.

If it has not submitted, then we ask Councilor Tan to inform the public ofDPS failure to comply with the condition of the contract. This colatilla inserted by Councilor Tan should not be taken lightly or ignored because IPM is paid a lump sum of almost P15 million a month and this means there should complete compliance of its contract or it pays a penalty.

If IPM has had deficiencies, what actions did DPS take?

We will wait of Councilor Tan's report. In the meantime let's move on to the cost of the contract.

Councilor Caesar Distrito, the movant for the approval of the contract, told the SP that the contract the SP was to approve “is advantageous to the city.”

He premised this “advantageous to the city” posture with a declaration that the city will be paying “only Fifteen Million (P15,000,000.00) compared to the one that we are paying of around Thirty Million.”

Distrito's claim that the IPM contract is “advantageous to the city” is misleading. He did not mention that what the city paid to the previous contractor was for a different scope of work and terms of reference than the IPM contract.

Why so? Let me give an illustration.

One who takes a taxi knows that he pays for the distance. If the taxi brings the passenger from the Capitol to Bago City, he will pay more than when the taxi brings the passenger only to Sum-ag. There is no “advantage” in this trip. It is only advantageous to the passenger if he paid the same fare from the Capitol to Sum-ag and from the Capitol to Bago.

From a cursory look, Distrito is right but as I said earlier it is not complete and therefore misleading.

The IPM contract involves only cleaning the city streets, collection of garbage and hauling that to the dumpsite. We shall take up the details later but these three functions are the basic for which the city pays almost P15 million a month.

The other and as expensive function is “waste management” which is not included in the IPM contract. In the contract with Dynamics, this function was part of the package of services. The costs of contracts are therefore different so that to talk of “advantageous to the city” can give a wrong impression.

Before we tackle further this “advantageous to the city” claim, let us take a look at the two contracts – IPM and Dynamics.

In the session of August 30, the DPS said that Dynamics billed the city P45 million for July 2016. It was explained that this amount is for collection and waste management. It is not just P30 million as Distrito cited DPS to have claimed. If therefore the collection part is P30 million, then waste management is P15 million.

Let's continue tomorrow.*



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