Tuesday, March 17, 2009 [ sunstar.com.ph ]
Minority members of the Cagayan de Oro City Council are asking City Hall the question after learning that the contractor in the Agora Build Operate and Transfer (BOT) project earns more than what he pays for his monthly rental to the local government.
Megafarms president Erwin Bryan See had earlier explained that the company had to assume the collection of fees as it officially started paying the P100,000 rental obligation to the local government beginning March 1.
See said his company's takeover of the market and terminal facilities was well within the provisions of the Agora BOT contract.
The 100,000 monthly rental was touted by administration officials as one of the advantages in pursuing the P250 million BOT project, which the opposition fervently objected because past BOT projects have only resulted to the local government paying millions for subsidies.
"Gipanghinambog nila nga makaayo ang BOT sa Agora kay dili pa gani magsugod ang project, mobayad na og sugod and contractor," said Councilor Teodulfo Lao. "Apan ang wala nila isulti, mangolekta naman diay og sugod ug mokita pa ang contractor bisan wala pa mahuman ang proyekto."
Councilor Roger Abaday, another minority member, said Agora vendors should not be made to pay for rent as long as the project that aims to refurbish the 2.5-hectare property remains unfinished.
The absolute takeover of Megafarms on the market and terminal facilities at Agora while the project is on its nascent stage was highly questionable, Abaday said.
The takeover meant the Megafarms now runs the place and has assumed collection of rental fees from stallholders and charges paid by buses and other public utility vehicles using the passenger's terminal.
Abaday noted that when the Cogon and Carmen public markets -- also built on BOT scheme -- were at their respective construction stages, contractor UKC Builders Inc. did not collect anything from the vendors.
Minority Floor Leader Zaldy Ocon believes the contractor's exaction of rental fees from stallholders during the construction period is bereft of legal basis.
Ocon said: "Granting that the contractor is now shouldering the operations cost of Agora because it is now running the place, is this not part of the company's obligations? Or does it have any obligation in the contract at all? Basin dawat limpyo lang siya?"
With Megafarms collecting more than the amount of its monthly rental obligation, Ocon said the rental clause in the BOT contract has effectively lost its meaning.
"So klaro nga uto-uto lang kini. Talo-talo sa publiko," he said.
When the Agora BOT contract was signed early this year, City Hall highlighted the rental clause as one of the advantageous features of the project.
However, Megafarms -- based on Sun.Star Cagayan de Oro's calculation, using the existing rates -- earns about P150,000 a month from the passenger's terminal alone. The collection from terminal operations could be bigger since the passenger's terminal also collects toll fees from other public utility vehicles.
On top of that, Megafarms also collects rent from over 3,000 stallholders and food vendors occupying the market and terminal facilities.
Even second district Representative Rufus Rodriguez expressed surprise on Megafarms' absolute takeover of Agora.
"They [Megafarms] have yet to construct a single post on the property and now they're starting to collect fees?" reacted the lawmaker, who favored the construction of a city-funded college within the site.
He added: "Build Operate and Transfer scheme man kaha ni? Wala pa gani sila maka build, unya nangolekta na?" (DVAIII and Cong Corrales)
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