GIFT is no gift

June 13, 2015
Iloilo City

Aw, come on, stop calling it a “gift”; it's a bane to both Guimaras and Iloilo residents.


The resource persons of today's episode of Kape kag Isyu admit that they charged Iloilo City officials for entering into a PPP contract with a private company to establish a GIFT.

PPP stands for “private-public partnership” euphemism for privatization which has become a notorious term for the sad experiences it brought to consumers the past years.

The private company referred to here is Double Dragon, Inc. while GIFT does not mean "gift" but “Guimaras – Iloilo Ferry Terminal” that the supposed partnership will establish at the city-owned property at the Fort San Pedro area.

Iloilo City Mayor Jed Patrick Mabilog contracted Double Dragon to invest  P125M to erect the GIFT on the 1.7 ha. Prime property of the city government in 2011, in a PPP that has been shrouded in secrecy, untransparent even to the National Economic Development Authority (NEDA), the government's clearing house that is supposed to scrutinize the contract before a government entity can proceed with the PPP.

This has raised the hackles of Guimaras officials, particularly, Vice Gov. Vicente de Asis who vowed to fight it even in court. De Asis though failed to rally his colleagues in the provincial board as the majority of it who had initially assured him support, switched side for some, rather as wags suspect, “sum” reasons.

The majority in the Guimaras provincial board, as if on cue after their clandestine meeting with Double Dragon representatives in Manila, have turned the tables on the vice governor to the point of crucifying him in the press for “womanizing” and subjecting him to investigation for his “high gasoline budget,” issues denied by de Asis.

“I have committed to protect the poor people of Guimaras, I will stand by them even though I am alone now,” vows the vice governor. 

Over 2,000 people regularly  commute from Guimaras to Iloilo daily for employmen or business, mostly, underground economy, to deliver or sell small quantities of fish, seaweeds, vegetables, camote, citrus, mangoes, charcoal, wood fuel, live chickens, goats and mushrooms that they deliver to markets or for sale in sidewalks. Some are ambulant vendors selling in government offices.

“These people earn only enough for their daily survival,” notes de Asis. “Doubling the costs of travel with the imposition of P11 terminal fee, is too much for them.”

The Integrated Bar of the Philippines Guimaras chapter (IBP-Guimaras) has filed a case in court questioning the validity of the PPP contract between Mabilog and Double because Guimarasnons who commute regularly to Iloilo City will be affected by higher costs of transport.

“Though the provincial board has backed out of the signature campaign that we need to support our case in court, we still push ahead with our suit because we, a body independent of government, have to defend the rights of Guimarasnons,” explains Vincent de Asis, IBP Guimaras president.

Once the GIFT is completed, commuters going to Guimaras have to cough P11 each in terminal fees, on top of the P12 fare.

That may not be the cost of travel, actually, since an unseen hand had scripted a scenario leading Double Dragon to a cornucopia of blessings. In 2010, newly elected Pres. Benigno Aquino III handed 1.7 ha. national government property to Iloilo City sans cost. Mayor Jed Patrick Mabilog lost no time handing the PPP contract to Double Dragon on a silver platter in the guise of PPP.

Still, the Department of Transportation and Communications (DOTC) plunked P135 million to construct a port and after completition, executed a waiver thoughtlessly, in favor of Double Dragon, handing the latter the government's function of total management of the wharf with the power to charge fees for cargo handling, berthing and landing, among others.

That means, ferry boat operators will have to adjust their rates from the current P12 per head, to maintain their profit margins after the imposition of new berthing and landing fees.
Mabilog has hugged the headlines of local paper rebuking de Asis to lay off the GIFT issue since Iloilo City is independent of Guimaras.

Eugenio Original, counsel for IBP – Guimaras in the suit against Iloilo City, explains that even residents of Iloilo City stands to be 
affected because the PPP with Double Dragon is “grossly disadvantageous” to city taxpayers.

“The 1.6-ha. city property can readily fetch P500M in value which is many times bigger than the P125M committed by Double Dragon,” Original says. “And how much is the share of Iloilo City from the earnings of the terminal? Only one percent.”

It is not known though whether the one percent is to be computed from the gross or net receipts. Laely, Iloilo City Kagawad Plaridel Nava hit Double Dragon for violating the “terms of reference.” He was heard on air complaining that the company is now erecting a mall with gas station which is not stipulated in the contract, and its ongoing construction activities don't even have the necessary permit and environmental clearance certificate (ECC).

That means: Iloilo City, you are doomed. The city would miss tens of millions of revenues had it strictly enforced that Double Dragon should construct only the GIFT and not the mall plus gas station. City constituents would be earned tens of millions of pesos had their officialdom opted to subdivide its the city's 1.6 ha. property to individual entrepreneurs.

As it is heading to right now: Iloilo City stands to earn only one percent from the GIFT but gets nothing from the operations of the Double Dragon mall and gas station.

Joel Estuch, a panelist of Kape kag Isyu, adds that the PPP also will dislocate city residents. If the Guimaras – Iloilo wharf were transferred to the GIFT from Ortiz, hundreds of sikad drivers, cargo handlers and vendors making a living from travellers will lost their livelihood. 

“The whole operations will now be monopolized by Double Dragon,” explains Estuche.

That means: Iloilo City, you are doomed!







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