Notwithstanding the mounting opposition on the planned modernization of the Baguio public market by a private firm, the city government is set to negotiate the terms of management and development with SM Prime Holdings, Inc. (SMPHI), which was awarded the original proponent status.
In a meeting of the P4 Selection Committee last Oct. 27, City Administrator Bonifacio dela Peña said the city government only has to wait for the SMPHI’s feedback so negotiation could begin.
Members of the selection committee will automatically become members of the negotiating panel based on the PPP ordinance. SMPHI and the panel have 80 days from acceptance of the project to discuss terms of the contract before confirmation by the city council.
SMPHI is yet to formally receive the notice of award of OPS.
In the meeting of the P4 selection committee last Oct. 27, City Legal Office Officer-in-Charge Richard Dayag said negotiations cannot commence unless SMPHI has officially accepted the project.
The decision to proceed with the negotiation came about even when some members of the selection committee pointed out that the more prudent act that Mayor Benjamin Magalong should have done was to deny or affirm the committee’s recommendation, not proceed with the immediate awarding of the OPS to SMPHI.
The committee earlier recommended to award the OPS to Robinsons Land Corporation (RLC). But Magalong has denied the committee’s recommendation citing RLC’s refusal to submit documents that would show that it has the best offer compared to SMPHI’s proposal.
Councilor Betty Lourdes Tabanda, a member of the committee, said if the mayor finds the recommendation unacceptable, he should have returned the committee’s recommendation along with his resolution containing reasons for his rejection so that the body can reevaluate its previous position.
“Para saan pa ang P4 selection committee if the mayor has the absolute authority to decide (on which proponent should be awarded the OPS)?” Tabanda said.
“If that is the case, then the ordinance has to be amended giving the mayor absolute authority but that is not the intention of the ordinance and of a public-private partnership,” Tabanda said, reiterating the crucial role a selection committee plays in the evaluation of project proposals.
Councilor Fred Bagbagen, also a member of the P4 committee said Magalong “should not motu propio award the OPS (to SMPHI).”
Councilor Mylen Yaranon also doubts if Magalong’s award of the OPS is within his prerogative as mayor.
Dayag and dela Peña, chair of the P4 committee, said the mayor has complied with what was stated in the implementing rules and regulations of the PPP Ordinance, albeit the latter admitted the mayor “took it upon himself” to award the OPS.
“The P4 selection committee is knowledgeable about the project. It just happened that the mayor rejected its recommendation. It would have been ideal if he accepted it. Doon nagkaroon ng kumplikasyon but the review (of the P4’s endorsement by an ad hoc committee) went through a very good process,” dela Peña said.
Tabanda said that to avoid complications in future transactions of the city government involving PPP deals, the PPP ordinance or its implementing rules and regulations should be amended spelling out the exact process to be followed when a proposal is denied and if this requires immediate award of OPS or reevaluation by the selection committee.
Budget Officer and P4 Selection Committee co-chair Leticia Clemente also suggested to Magalong’s allies to consult the National Economic Development Authority or the PPP Center – government agencies knowledgeable about the Build-Operate-Transfer Act. – Rimaliza A. Opiña
