BAGUIO CITY – The historic Convention Center here is now considered owned by the city government following the signing of a compromise agreement between Mayor Mauricio G. Domogan and Roberto Vergara, president of the Government Service Insurance Corp.
The agreement stipulated the city government would acquire the over 7,100-square meter facility in exchange for full payment of approximately P200 million that includes arrearages.
The Baguio Convention Center was constructed in 1973 through the initiative of former First Lady and now Ilocos Norte 2nd district Rep. Imelda R. Marcos when she was the head of the Ministry of Human Settlement purposely to host the world chess championship match between Gary Kasparov and Anatoly Karpov which was hosted by the Philippines then.
The compromise agreement will put to rest the conflict between the city government and GSIS following the alleged failure of the city to comply with its obligation to continuously pay the mandatory amortization prescribed in a memorandum of agreement signed between the parties in 2004 for the acquisition of the 2,000-seater convention facility at a price then of P250 million.
Because the city defaulted in the payment of its annual amortization after paying P50 million as initial down payment on the agreed purchase price, the city’s obligation to GSIS ballooned to P316 million which prompted the latter to file an ejectment case against the local government and sought to recover the property.
However, Domogan said the city was again able to pay GSIS the amount of P60 million through the city’s accumulated share from the lease rentals of Camp John Hay paid by the Bases Conversion and Development Authority.
Furthermore, GSIS condoned P50 million out of the surcharges imposed on the principal thereby leaving behind only P206 million as the city’s supposed balance in order to acquire the property.
Lately, Domogan said the city’s local finance committee was able to uncover more than P7.8 million over payment made by the local government to GSIS in the years 1996 and 1996 which the latter recognized thereby paving the way for the signing of the compromise agreement.
Aside from the convention facility, the city mayor revealed GSIS will be ceding to the local government at least 1 hectare of its premises which will be used as a rain catchment basin in order to store water during the rainy season and that the same will be used for the city’s water requirements during the rainy season.
Domogan added as soon as the city will be able to acquire the property, it will study the possible rehabilitation of the 38-year old structure so that it will become an attractive convention facility capable of hosting big regional, national and international gatherings in the future.
According to him, the city government is also open to a public private partnership in the management and operation of the convention facility provided that the agreement will be to the greater advantage of the city government.
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