The main entrance of the Provincial Administration Center of Negros Occidental in Bacolod City. (PNA Bacolod file photo)
BACOLOD CITY -- The Negros Occidental provincial government will return to the Land Bank of the Philippines (LBP) the PHP27-million loan it took earlier to fund the development of the Provincial Administration Center (PAC).
This was confirmed by 2nd District Board Member Salvador Escalante Jr., chairman of the committee on appropriations, budget and finance, on Wednesday after the province ventured into an agreement with a private contractor to pursue another project.
Escalante said the amount represents the 15 percent mobilization fund released by the province to Dynamic Builders and Construction Company, Inc.
However, the provincial government instead signed a lease agreement with Dynamic Builders, allowing the Bacolod-based contractor to rent the 6,485-sq. meter portion of the PAC property.
Escalante said because of this, the province has to return the PHP27 million to the bank, which forms part of about PHP186 million in initial budget for the PAC development.
“Dynamic Builders has actually returned the fund to the province due to the cancellation of the initial proposal to develop the PAC building,” he said.
The board member said the Provincial Board approved a supplemental budget request for the allocation of the PHP27 million as return-fund to LBP.
Last week, the provincial government and Dynamic Builders signed the agreement for the province’s first-ever public-private partnership for the people (P4) initiative.
The 50-year contract involves the lease of the 6,485-sq. meter PAC property, where Dynamic Builders will develop the PHP1.7-billion Capitol Commercial Center, a 10-storey building that will house a hotel, shopping mall, business process outsourcing offices, and other commercial spaces.
Meanwhile, the provincial government will apply for a PHP1.2-billion loan with LandBank to fund its various infrastructure projects, including the development of a new PAC building worth PHP900 million.
Other projects are the PHP125-million renovation of the Eleuterio Decena Memorial District Hospital in Hinoba-an town, and purchase of various facilities and equipment for the Mambukal Hotel and Convention Center and Tourist
Lodge and the Negros First Hotel, and for the Negros Pala-Pala and Food Terminal in Bacolod City, totaling PHP175 million. (PNA)
