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[av_heading heading=’P6M A YEARCity, Bredco’s new contract underway’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY MAE SINGUAY
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February 6, 2018
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BACOLOD City – The Bacolod Real Estate Development Corp. (Bredco) has agreed adjusting the annual compensation it gives to the city government from P800,000 to P6 million.
Councilor Caesar Distrito, chairman of the SangguniangPanlungsod (SP) committee on finance and appropriations, proposed the million-peso city compensation to Bredco president John Alonte.
Alonte agreed with the proposal during a public hearing held yesterday at the SP session hall in the Bacolod City Government Center.
The hearing was in relation to Mayor EvelioLeonardia’s endorsement letter in response to Bredco’s bid to extend for another 25 years its port operation and management.
Bredco port is one of the gateways to Bacolod City.
Paragraph 5, Title 9 of the 1995 Comprehensive Revised Reclamation Agreement (CRRA) of Bredco and the city government grants the former the option to extend its port operation and management when its 25-year contract ends.
It was former Bredco president SimplicioPalanca – Alonte’s uncle – who wrote the city government a letter expressing Bredco’s interest to extend its port operation.
The city government and Bredco entered into the CRRA on March 16, 1995.
The 1995 CRRA required Bredco to compensate the city government with P800,000 annually in exchange of its port operation on the latter’s 5-hectare lot.
The agreement will expire on March 20, 2020.
Simplicioon Oct. 24, 2017 offered the city government an annual compensation of P3.8 million in the proposed new agreement.
Leonardia created a technical working group to study Simplicio’s proposal. The group submitted its report on Jan. 22.
The report initially recommended that the city government must require Bredco to give an P8-million annual compensation upon the start of the new contract.
But since the compensation will still be subject to a 25-percent increase every after five years, the report recommended a lower price, which amounted to P5,232,975.30.
It was agreed in the hearing, though, that Bredco will be giving P6-million compensation to the city government which will be subject to the 25-percent increase every five years.
Alonte wanted the new agreement to be furnished before Palanca’s birthday on March. He added that the new agreement will be his “gift” to his uncle who will be turning 96 this year.
Alonte added that upon the materialization of the agreement, they will continue with their plan to make Bredco a “world-class port.”
For his part, Distrito said the P6-million annual compensation rate is “just, fair and advantageous.”
Distrito added that he will submit tomorrow before the SP a committee report regarding the hearing.
He also said he expects the SP to endorse the new contract with Bredco.
Bredco representatives, SP members, City Legal Office representatives, city department heads, and businesspeople, among others, attended the public hearing./PN
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