MORE NEWS, BAGUIO CITY

Mayor to talk Uniwide out of city market deal
By Aileen P. Refuerzo

BAGUIO CITY – Mayor Reinaldo Bautista Jr. expressed high hopes that Uniwide Sales Realty and Resources Corp. (Uniwide) would agree to withdraw from its market development accord with the city government to give the city a free hand in charting the development and operation of the trading center.

In the weekly Ugnayan Panlungsod press briefing aired over Radyo ng Bayan Thursday, the mayor said he would convince the company it would be best to abandon the deal considering the many upheavals that superseded contract.

The mayor is set to meet with Uniwide executives on August 5 to thresh out the deal.
“Our people do not welcome privatization anymore and I intend to forcefully stress this to Uniwide. The city intends to take over the development and operation of our city market and I’m hoping that Uniwide will understand this,” the mayor said.

The deal was forged in 1995 but was not implemented due to the court cases that were only resolved this month.

The mayor said because of the long time that had elapsed since the contract was signed, a lot of changes have transpired and it follows that there are conditions and terms in the contract that are not applicable anymore to the present situation in the city.

He said events and circumstances that occurred since that time particularly the city’s experience on the botched deal with the infamous Jadewell Parking Systems Corporation made city officials and residents reconsider the benefits of the privatization scheme.

In the meeting, Uniwide is expected to also present its plans on whether or not to pursue the deal.

In case Uniwide decides to pursue the project, the mayor said the city will still welcome it but the firm should present an updated development concept and plans.
Uniwide won the bid for the project costing P1.7 billion in 1995 but negative reports on its financial status over the past years raised doubts on its capability to pursue the project.

City officials sought to hasten implementation of the development project due to the pressing need to upgrade the market which is now in a dilapidated state.

The Regional Trial Court recently affirmed the validity of its contract with the Uniwide for the development of the market under the design-build-lease (DBL) scheme which was questioned by market vendors groups opposed to the project.

Under the lease agreement forged during the term of former mayor Mauricio Domogan, Uniwide will build a multi-storey building in the area and operate its upper floors for 30 years. The first floor where the main market place and legitimate vendors will be housed will continue to be operated by the city government.

Baguio execs hit DOT order stopping P10-M Burnham Park fund
BAGUIO CITY – The Department of Tourism has scrapped the P10-million annual aid it is giving to the city government for the maintenance and operation of the historic Burnham Park here, a premier tourist destination. The reason for the scrapping of the fund assistance is that by now the park should be self-sustaining. Tourism Secretary Joseph Ace Durano informed city officials of his office’s decision to stop the financial assistance, saying maintenance and operation of the park have been devolved to the city government.

Earlier, President Arroyo issued an executive order turning over the management and operation of Burnham Park from the Philippine Tourism Authority to the city government, granting a request of city officials who had complained about the failure of PTA to maintain the park well.

City officials said the scrapping of the P10-million annual aid being given by the PTA to the city is not included in the President’s order.

They questioned Durano’s "unilateral act" of scrapping the fund, which is appropriated for the salaries of some 100 workers.

City officials said Durano could not just stop the grant of the fund aid for Burnham Park because this requires a PTA board resolution, adding that the city is still entitled to get its annual share from the PTA this year.

The President had reportedly assured city officials that the fund assistance for the park will continue until 2010.

City officials branded the act of Durano as "in defiance of the order of the President," saying the DOT secretary deprived park employees of their salaries and benefits.

In 1995, former President Fidel V. Ramos issued Executive Order No. 224 creating the Burnham Park management committee, composed of representatives of the national and city governments.

The committee is in charge of the administration, operation, and management of the park.

Initially, the PTA had been giving P18 million to the city as its annual aid, but this was reduced to P10 million in 2000.

In case Durano insists in scrapping the aid for the park, city officials said they are willing to enter into a compromise in which the fund assistance would be removed only if a bill in Congress seeking for the conversion of Burnham Park into a national park is approved.

At present, the city government is implementing a P12-million facelift project at the children’s park to ensure it will conform with standards. – Dexter A See