City LED lights project marred by law questions

By Aileen P. Refuerzo

BAGUIO CITY – Pointing out loopholes on the proposed sharing scheme plan and the possible breach of the Build-Operate-Transfer (BOT) and procurement laws, the city council on Monday deferred action  on the proposed terms of reference (TOR) for the street and government building light replacement and management venture using the Light Emitting Diode (LED) technology.

The matter will be discussed anew in the council’s next session on Oct. 22.

Mayor Mauricio Domogan expressed hope that the body will see the rationale behind the proposed project.

               

Despite the questions raised, Vice Mayor Daniel Farinas observed that the aldermen “seemed to be in favor except that there were concerns that need to be addressed first by the technical working group.”

               

Councilor Peter Fianza opined that the proposed TOR which hinges on a cost-savings sharing scheme might also be in violation of Republic Act 9184 or the procurement law which requires a procurement plan.  The project, he said, should be included first in the city’s procurement plan.

               

Fianza said the TOR also does not conform to any of the seven development options provided under the BOT law. 

               

He said these concerns along with the maintenance requirement of the LED lights should be considered by the technical working group that drafted the TOR.

He also suggested that the city consider undertaking the bulb replacement on a phase-by-phase basis to enable it to shoulder the high cost required.

               

Fianza also questioned the projected cost-savings sharing scheme for lack of definite basis.

               

“We are speculating on the savings (to be generated).  We are actually gambling,” he said.

               

Councilor  Perlita Rondez echoed Fianza’ observation saying this should not be a “guess work” and that a feasibility study should first be conducted to determine the proposed project’s viability.

               

Rondez also suggested that the city undertake the LED lights replacement on its own through other financial means like loans or available allocations like the LED lighting project implemented along Camp 7 funded by Rep. Bernardo Vergara’s Priority Development Assistance Fund (PDAF).  

               

Councilors Nicasio Aliping Jr. and Isabelo Cosalan Jr. said the sharing scheme should be more definite.

Assistant city accountant Almaya Addawe, a member of the technical working group promised to consider the observations of the members in further refining the TOR.

Mayor Domogan earlier convened the technical working committee which drafted the TOR led by city administrator Carlos Canilao and the council committee on laws under Councilor Richard Carino to adjust the terms and resolve the gray areas.

               

He said it was agreed that the TOR should be geared towards obtaining the best offer to improve the lighting service along streets and public buildings to better serve the lighting needs of the public.

               

 Under the venture, the city hopes to cut down its power costs through a cost-saving share scheme with a qualified company.

The city at present incurs P42.32 million electric bill per year for a total of 8,200 lighting fixtures lighting streets, alleys, parks, overpasses and flyovers plus P24.08 million for the lighting of government offices and schools.

               

The winning firm is expected to undertake replacement at no expense to the city within six months upon signing of the contract and to take charge of the repair and maintenance of all installed LED lighting equipment for a period of 12 years.