Mayor says controversial Baguio lights deal viable

By Aileen P. Refuerzo

BAGUIO CITY – Mayor Mauricio Domogan on Wednesday defended the proposed Light Emitting Diode (LED) light replacement and management venture saying it remains a workable option for upgrading the city’s lighting system.

 In his Ugnayang Panlungsod media briefing, the mayor set aside set aside snowballing suggestions that in lieu of commissioning a private company, the city by itself undertake the replacement of the existing lighting facilities, maintain the management and in the process enjoy the full benefit of the savings to be generated.

           

The mayor said this option was also considered but was thumbed down in view of the city’s lack of financial capability to shell out the huge capitalization needed for the project.  He said LED bulbs and fixtures are costly and replacing the approximately 12,000 bulbs operated by the city government along streets, overpasses, schools and government offices would command a hefty sum which the city cannot afford.

           

 The recommendation for the city to secure a loan for the project is also impractical as the interest rates would also cause a strain on the city’s finances, the mayor added.

           

“On the other hand, why not give it to a private firm and our only obligation would be to continue appropriating what we are regularly paying for our electric bills and we will freed from the obligation to maintain and replace the lighting facilities which will mean savings from the operational costs,” the mayor said.

           

Apart from this, he said the city also stands to have a share from the savings to be realized the shift to the LED facilities as per the proposed TOR now undergoing scrutiny by the city council.

He said the proponent that can offer the biggest share to the city under the cost-savings sharing scheme could have the edge in the bidding.

             

The mayor said the best offer will also become the basis of the cost-savings sharing scheme to be adopted by the city.

           

The said provision on the sharing scheme in the proposed TOR met criticisms at the city council lately for having no concrete figure of savings on which the shares could be based.

             

As to the feasibility study being suggested by the aldermen, the mayor said the results of the LED light experiments conducted by proponents near city hall and other areas are enough proof that the use of LED lights indeed cuts down power consumption by considerable proportions.

           

On the TOR’s being inconsistent with the procurement and build-operate-transfer (BOT) laws, the mayor said these involve procedures and can be remedied by fine-tuning and adapting the terms to suit the requirements of the said laws.

           

He said that what is more important is to consider the practicability of the project.

“Without the LED deal, the city will continue to appropriate the same amount for its electric bill anyway so why not consider this as a practical option to improve the service while at the same time realize savings for our city,” the mayor said.

The city council is scheduled to discuss anew the proposed TOR in its next session on Monday.