BACOLOD City – The implementation of the first-ever public-private partnership for the people (P4) project in Negros Occidental is expected to generate at least P530 million in revenues for the provincial government.
Vice Governor Eugenio Jose Lacson announced the estimated amount during the Provincial Board’s regular session on Wednesday afternoon, upon the approval of the ordinance granting authority to Governor Alfredo Marañon Jr. to sign the memorandum of agreement (MOA) with the project proponent.
Under a 50-year contract, the Bacolod-based Dynamic Builders and Construction Company Inc. will lease the 6,885-square meter portion of the Capitol property along Gatuslao Street, North Capitol Road, and Aguinaldo Street in this city, which is currently occupied by the Provincial Administration Center.
This will pave the way for the development of the PHP1.7-billion Capitol Commercial Center, a 10-storey structure that will host a hotel, shopping mall, business process outsourcing offices, and other commercial spaces.
The lessee, Dynamic Builders, will pay PHP551,225 per month with advance payment of PHP13.2 million and a security deposit of the same amount. The 50-year rental escalates by 5 percent every five years.
Second District Board Member Salvador Escalante Jr., chairman of committee on appropriations, budget and finance, said the provision of authority to the governor to enter into an agreement with Dynamic Builders has to be in a form of another ordinance.
This is stipulated in the P4 Ordinance, he said, adding that after the approval on Wednesday, the governor is expected to sign the lease agreement next week.
Escalante said the PHP530-million revenue for about 6,000-square meter property is favorable to the province.
“Aside from the revenues, the development can really benefit the province as it will create thousands of employment and opportunities to Negrenses,” he added.
Escalante said the initial proceeds of the agreement will go to the province’s General Fund and will be part of the 2019 Appropriations Act of 2019. (PNA)