Venus Ilagan, president of KAMPI (KAtipunan ng Maykapansanan sa PIlipinas) leads observers from Baguio City in the STAC of Dagupan City. Dagupan City STAC was recognized by the Danish Society for Polio and Accident Victims as the top2 Stimulation And Therapeutic Center of the country. The MOA was signed by then Acting Mayor Alvin Fernandez with authorization from the Mayor who was then out of the country last August2004. Said MOA established the Dagupan STAC Building which was funded by the City, Breaking Barriers for Children of Denmark and the KAMPI provided the professional resources at no expense to the city. The city for its counterpart also provided the learning materials and utility consumption of the center. Come December, it shall be the City Government that shall have full resposibility in its operations with trained group that shall be under the city government.

The success of STAC Dagupan inspired the Danish Society to pilot a Breaking Barriers for Young Adults Center in Dagupan City. The project will have an investment from them in the amount of 12million pesos.

VM Alvin Fernandez inspires the people of Baguio to put up their STAC Center as this center provides an avenue for Children with disabilities to learn and grow as productive citizens. It also becomes a venue for parents to help one another and lift up each other in the challenges they face.

November 27, 2006

Atty. Geraldine Baniqued
City Legal Officer

Mr. Rafael Baraan
City Administrator

Thru: Mayor Benjamin S. Lim
City Mayor

Greetings! May we request the opinion and reply of the City Legal Officer and the Administrator on the BOT Law and an update on the Bugnay issue?

Let us first discuss the Build Operate Transfer Scheme.

A Build-Operate-Transfer (BOT) project is a concession contract in which a Principal, grants a concession to a Concessionaire who is responsible for the construction and operation of a facility over the period of the concession before finally transferring the facility, at no cost to the Principal, as a fully operational facility.

Build Operate Transfer is the building of PUBLIC INFRASTRUCTURE using private funds that grants the financier rights to operate.

The BOT Law is also known as Republic Act 7718.

The project proponent operates the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals, and charges not exceeding these proposed in its bid or as negotiated and incorporated in the contract to enable the project proponent to recover its investment, and operating and maintenance expenses in the project. The project proponent transfers the facility to the government agency or local government unit concerned at the end of the fixed term which shall not exceed fifty [50] years.

SEC. 4. Section 4 of the same act is hereby amended to read as follows:
"SEC. 4. Priority projects. - All concerned government agencies, including government-owned and -controlled corporations and local government units, shall include in their development programs those priority projects that may be financed, constructed, operated and maintained by the private sector under the provisions of this Act. It shall be the duty of all concerned government agencies to give wide publicity to all projects eligible for financing under this Act, including publication in national and, where applicable, international newspapers of general circulation once every six (6) months and official notification of project proponents registered with them.

"The lists of all such national projects must be part of the development programs of the agencies concerned. The list of projects costing up to Three hundred million pesos [300,000,000] shall be submitted to the ICC of the NEDA for its approval and to the NEDA Board for projects costing more than Three hundred million pesos [300,000,000]. The list of projects submitted to the ICC of the NEDA Board shall be acted upon within thirty [30] working days.

"The list of local projects to be implemented by the local government units concerned shall be submitted for confirmation to the municipal development council for projects costing up to Twenty million pesos; those costing above Twenty up to Fifty million pesos to the provincial development council; those costing up to Fifty million to the city development council; above Fifty million up to Two hundred million pesos to the regional development councils; and those above Two hundred million pesos to the ICC of the NEDA."

May we know from the City Administrator if the City Development Council approved the plan?
Did the CDC consider its limitation of up to 50million pesos? Did the CDC carefully study the type of Tourism Complex that it is to propose to the Sanggunian for Authorization? Did the Sanggunian Authorize the B.O.T project? Was the technical plan in existence before the bidding was done? Who did the plan? Why was the Sanggunian not part of the process, Authorization?
Did it pass thru the Regional Development Council for confirmation having a projected 84million investment?
What is the basis of this 84million peso investment?

My opinion: If the answers to requirements are in the negative, then the city can not proceed to the Bidding of Project as per NATIONAL LAW. It will have to pass through the process as required by the Law. If it did not go through the process required by law then it could not be awarded. May we request the opinion of the City Legal as regards this matter?

The Sanggunian has no power to authorize a BOT contract that is contrary to what was required of by Republic Act 7718 prior to bidding.

My Question: If the Sanggunian allows and authorizes the contract of a BOT which did not pass through the mandate of the Law, will it be guilty of abuse of discretion? Will the Authorization of the Sanggunian for the Mayor to enter into a Contract cure the defects of the bidding process? Does the Sanggunian have the power to override RA7718?

My Question: If you think the project is really worth doing, Would you recommend for a re-bidding in order for it to comply with the law? Would it be wise to consult the public as regards to a Magsaysay Park that shall be leased for another 25years to another BOT operator? The people will be affected and the scope of the contract will go beyond the administration of the present elected officials.

My Question: Last October 25, 2004, The SP through resolution 4678-2004 pinpointed the Magsaysay Park as a Tourism Park that is to be equipped with adequate recreational Facilities. The SP also passed Resolution 5406-2006 on May8, 2006 Adopting the Magsaysay Park Development Project as a Priority Program of the City Government that could be used as the basis for future development. Does this resolution allow the bidding of a B.O.T? What is the basis of the bidding? Where did the bidders base their bid? When did the bidding process start?

SEC. 5. Public Bidding of Projects. - Upon approval of the projects mentioned in Section 4 of this Act, the head of the infrastructure agency or local government unit concerned shall forthwith cause to be published, once every week for three [3] consecutive weeks, in at least two [2] newspapers of general circulation and in at least one [1] local newspaper which is circulated in the region, province, city or municipality in which the project is to be constructed, a notice inviting all prospective infrastructure or development project proponents to participate in a competitive public bidding for the projects so approved.

"In the case of a build-operate-and-transfer arrangement, the contract shall be awarded to the bidder who, having satisfied the minimum financial, technical, organizational and legal standards required by this Act, has submitted the lowest bid and most favorable terms for the project, based on the present value of its proposed tolls, fees, rentals and charges over a fixed term for the facility to be constructed, rehabilitated, operated and maintained according to the prescribed minimum design and performance standards, plans and specifications. For this purpose, the winning project proponent shall be automatically granted by the appropriate agency the franchise to operate and maintain the facility, including the collection of tolls, fees, rentals, and charges in accordance with Section 5 hereof.

My Question: Who made the prescribed minimum design, performance standards, plans and specifications? Since it is not a part of the Annual Investment Plan or Annual Development Plan, should the SANGGUNIANG PANLUNGSOD CONFIRM and Authorize the Technical PLAN and terms of reference first BEFORE a BOT project was to be BIDDED OUT? Could the city bid out a BOT plan that was not authorized by the Sanggunian for bidding? Where is the basis for the bidding? Do we have a program of works that shall state the type of materials to be used? If you have sent this to the Sanggunian, when was the date? When was the bidding? Could the City bid out a lease rate that was not authorized by the Sanggunian such as the 75centavos/sq.meter/day or if you compute it on a yearly basis is equivalent to 1million pesos per year? What is the basis for a term of 25years? Why not 10years or 5 years? What will the Tourism Complex house? Will it house the public recreational facility stated in SP Resolution 4678-2004?

As to the issue of Bugnay which needs to be settled, being a lawyer of the city that was directed by the Sanggunian to pursue Bugnay in the City’s claim, may we be enlightened on the following issues.

The Bugnay Market is considered as a PUBLIC Infrastructure that used private funds that granted the financier to operate and maintain the facility, including the collection of tolls, fees, rentals, and charges. As a public infrastructure, it is owned by the city and the city waits for the project proponent to transfer the facility to the government agency or local government unit concerned at the end of the twentieth year which is 2007.

Where is the Bugnay Market now, as is, where is, what happened to it? Why did it suddenly disappear? Does the city have possession of the Bugnay Market or its remnants? Did the city get the insurance due the building? Will it still be able to get the insurance of the building or get a reconstructed building?

As per the law, The project proponent operates the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals, and charges not exceeding these proposed in its bid or as negotiated and incorporated in the contract to enable the project proponent to recover its investment, and operating and maintenance expenses in the project. The project proponent transfers the facility to the government agency or local government unit concerned at the end of the fixed term which is 2007.

The fire that broke out in Bugnay in 2004 was found to have been caused by faulty electrical wiring of a cell phone stall that was not listed as an official tenant, therefore having no official electrical connection and only taps in other stalls electrical connection. Who is responsible for this unsafe practice that caused the Fire Accident? The administration of Bugnay? If this is the case, could the city still demand the responsibility of constructing and turning over a facility of equal structure from Bugnay?

Lastly, is the city allowed to bid out an area where a Contract with Bugnay has not yet expired? If the city has pre terminated the contract of lease for the continued used of the leased premises of the said corporation, Did the Sanggunian approve or authorize or ratify such a contract? May the Sanggunian be furnished a contract of termination to ensure that the rights of the city are protected? These are the issues that need to be clarified in the Sanggunian.

Kindly make a written reply on all clarifications being raised in this letter to the Sanggunian Panlungsod, so it may be able to deal with the request of Authorizing the City Mayor to enter into a contract with the BOT operator with clarity and legality.

Respectfully,

VM Alvin Fernandez

cc: All SP Members

Letter to the Editor/ Publisher

Last Nov.19 issue of the Sunday Punch, Mr Gonzalo T. Duque in his column Playing with Fire made several accusations that Land inside Proclamation98 have been sold in exchange for several Billions that have already changed hands. He even wrote that the City intends to turnover the National Park to the DENR which is an absolute figment of his imagination.

For the information of the public, Proclamation 98 was signed by Pres. Diosdado Macapagal in 1963. The quest to have a National Park started in 1952 via Resolution No.52 passed by the Sanggunian of Dagupan requesting that all foreshore land of the Blue Beach be reserved for a National Park and also stated the City’s adamant opposition to any portion of the public land be leased out by the government. The council also passed Reso 53 of 1952 Requesting the Director of Lands to Disapprove any application of lease in the Blue Beach since the City intends to make use of it as a National Park.

President Diosdado Macapagal signed into law Proclamation98 segregating 72 hectares or 721,782 square meters of beachfront running from Bonuan Gueset, Boquig and Binloc up to the Cayanga River .

As of present, there are several National Government Offices(BJMP, AVRC, CENRO,etc.) located in the Park, the Ampi Theater, Mayor’s Shed, Japanese Garden, Central Bank of the Philippines, there also stands the Integrated Bar of the Philippines Building, Senior Citizens Bldg, Pangasinan Dental Building, Free Masons Building, PAG ASA Building, Police Community Precinct, Tondaligan Park Administration Building, 215 SHED operators that were given permit by the city and a Mosque with Muslim informal settlers, all located in the Barangay Gueset portion. The Boquig portion has almost been occupied by the cemetery. In the Binloc area is the City Agriculture, BLISS, Haven for Children, Haven for Women, BFAR(occupied a chunk of binloc).

Bonuan Gueset part is where the concentration of the Park Development is located having an area of 25.8 hectares or 35.79% of Proc98. Upon reaching Brgy Boquig, there was a break in the park because there are a few lots which managed to have Titles. Therefore, the continuation of Proc98 jumped over these lots and proceeded going to binloc area. The area of Proc98 which is located in Boquig is roughly 6.48 hectares or 8.98% of Proc98.
Incidentally, the present owner of a beachfront lot measuring 4.0987 hectares or 40,987sq.meters under Tax Declaration 4080892(declared as ORCHARD or Agricultural Land) with TCT40836 that broke through Proc98 (dividing the Tondaligan park in two)as per the survey conducted by the city is Mr. Gonzalo T. Duque, who is listed as a partial owner with a market value of 7pesos and 35centavos per square meter dated in the year 2003.

Proc98 in Barangay Binloc has an area of 39.86 hectares or 55.23% of Proc98.
During the term of President Marcos, a BLISS housing project was established in the Binloc area occupying 5hectares of Proc98. It was also in this era when the structures of BFAR were established.

As per the Assessors office, they have never issued Tax Declarations to any person within proclamation 98 except for the structures that were granted usage by the National Government through Presidential directives or by the city in its capacity as Administrator.

There are only about 25 hectares remaining that is free for further development inside Proc98. If Gonzalo claims that Lands have been sold inside Proc98, then the maximum land that could be sold is 25hectares which he claims are worth Billions of pesos as per his friend accountant that is willing to put his reputation at stake. Billions would at least be 2Billion pesos to be considered BILLIONS. If we divide 2billion pesos by 250,000 square meters (25hectares) that would be equivalent to 8,000pesos/ sq.meters. This will be the safe assumption that his friend accountant might have done.

Thanks to this revelation of Gonzalo that indeed the market value of land inside Tondaligan Park could now have the value of 8,000/sq.meter that could be sold to private entities simply with Tax Declarations(which is not even a proof of ownership), the city could now make a reassessment of the property in that area. (I wonder if there really could be Billionaire corporations or individuals that are willing to risk billions to buy lots inside a popular National Park known as Tondaligan Park .)

The city could probably asked the owners of lots in the heart of Tondaligan Park that were spared from Proclamation98 if indeed such an P8,000/sq.meter market value in that area is possible.

As a concerned citizen, would Gonzalo T. Duque be willing to voluntarily declare the supposed market value assessed by his friend accountant in the Tondaligan Area since his 4.0987hectares lot is within the vicinity of the Tondaligan Park ? By doing so, he shall be doing the city a great justice by adding an additional 2,045,200 pesos on the city’s RPT collection only in that particular land.

If there are sales of lots inside Proclamation 98 or the Tondaligan Park worth billions of pesos, it shall be easy to pinpoint. Investors with such amount are likely to construct beach houses and resorts in the area they bought. Maybe with the accusations already published, Mr Gonzalo T. Duque could pinpoint these billionaires to the city and publish it. May we therefore request Mr Gonzalo T. Duque to substantiate his accusations as regards Proc98. Any Law Student or Lawyer would know that they should verify their facts first before publishing accusations to any entity.

May we therefore request that these corrections be published in your paper in the interest of truth and justice. Rest assured that I am always available for any further clarifications. Keep up the good work!

Respectfully,

Vice Mayor Alvin Fernandez

An employee of the city government of Dagupan was a victim of dengue. Luis Vallejos, assigned at the Waste Management Division is now confined at the Luzon Medical Center. The victim's brother Cap. Emong Vallejos informed the Vice Mayor 930PM of Nov20 of the condition of the brother with the urgency of blood. The VM asked the blood type and got a reply that it is Type B. The VM then proceeded to the Red Cross center at 945 in the evening of the same day to be the first volunteer to give his Type B blood. We pray for the immediate recovery of Luis, who is known to be a dedicated employee of the city.

August 24, 2006. Acting Mayor receives delegates from SIDA and WB conducting site inspections for possible recipients of Grants for Water Sanitation. Discuss in the meeting are the information requirements needed for the city to be considered.

Oct21, 2006. Dagupan City is chosen as one of recipients for Grants from SIDA and WB. Dr. Leo Carbonel presents at Sulo Hotel in Quezon City while VM Alvin looks on.

DAGUPAN CITY - This city will implement the “Sustainable Sanitation in East Asia” project of the Swedish International Development Agency (SIDA) and the World Bank water and sanitation program.
The project will be funded by the SIDA and co-funded by the World Bank, which is also the project implementor.
The city, which will receive about $300,000 fund support for the four-year project, has been chosedn as one of the six recipients of the program in the Philippines.
City health officer Leonard Carbonell said the project aims to address sanitation problems and concerns in urban and rural areas.
“The project also aims to address health concerns associated with sanitation,” Carbonell said even as he revealed that an average of 9.3 Filipinos sufer from diarrhea every hour and an average of 25 Filipinos die of diarrhea every hour.
Carbonell said that aside from the $300,000, an additional grant will be conferred by SIDA whenever there will be an ongoing sanitation related projects in the city.
Carbonell said that the city was chosen because it has demonstrated ability to implement the program based on the assessment of the Department of Health and Department of Environment and Natural Resources which are the conduit participating agencies for the project.
He added that based on the assessment of the participating agencies, Dagupan City has been evaluated as a good project partner efficient in implementing projects, and has a committed local government unit.
According to Carbonell, some of the indicative activities which may be undertaken in line with the project would be identifying strategies for protecting the existing water source identifying strategies for protecting water eco-system, and development of surveillance mechanisms for diarrheal diseases.
Carbonell attended the consultation on the implementation of the project with the LGUs and agencies concerned on October 20 at the Sulu Hotel.
Other recipients of the project include certain municipalities in the Mt. Province, Samar, South Cotabato, General Santos and Sarangani. (CIO/Sunshine D. Robles)