Capitol reapplies loan for heavy equipment

CEBU, Philippines - The Cebu provincial government is applying anew for a P200-million loan with the Land Bank of the Philippines after its loan extension expired in January this year.

The province failed to consummate the second loan extension granted by the LBP because of some lacking pertinent documents, Provincial Budget Officer Danilo Rodas said.

Rodas said that this means further delay in the procurement of light and heavy equipment to be used for provincial road construction and maintenance.

Rodas, the designated focal person for the procurement of heavy equipment, said they are still waiting for the loan approval from the Monetary Board of the Bangko Sentral ng Pilipinas, one of the requirements for loan application with LBP.

Prior to the expiration of the loan extension, the province has already reapplied for the loan as they anticipated delay in complying with the requirements within the given period owing to the controversial bidding issue, he said.

 “Mag-extend unta mi sa loan pero di naman pwede so mag-apply nalang mi balik. Ato gyod gipaningkamotan nga mapaspasan ni,” he said.

It can be recalled that the province asked twice for the extension of its P200- million loan application with LBP in April and October 2016, respectively, pending the completion of the  “pre-release documentary requirements.”

 Capitol wants to borrow P200 million from LBP to finance the acquisition of various heavy equipment. However, the controversies involving the bidding of the P250 million worth of heavy equipment had stalled the loan. The P50 million will be shouldered by the province.

 But after the failure of bidding and several rebidding attempts for the purchase of equipment, Capitol's Bids and Awards Committee declared finally the joint venture of ConEquip Philippines, Inc. and RDAK Transport Equipment, Inc. as the bidder with the single calculated and responsive bid amounting to P227.4 million during the opening of bids on November 25, 2016.

 In December last year, the Provincial Board voted to award Capitol's P227.4 million heavy equipment project to the joint venture. The board authorized Governor Hilario Davide III to sign the contract between the Province of Cebu and the joint venture represented by Ralph Clinton Tio. Not all PB members, however, voted for the measure.

Those who voted in favor were Board Members Christopher Baricuatro and Jerome Christian Librando, the sponsors of the resolution; Yolanda Daan, Jose Mari Salvador, Jude Thaddeus Sybico, Miguel Antonio Magpale, Celestino Martinez III, and Earl Tidy Oyas.

  Those who voted against it were Board Members Raul Bacaltos, Edsel Galeos, Alex Binghay, and Victoria Corominas-Toribio. Board Members Sun Shimura and Glenn Bercede abstained while Board Member Thadeo Jovito Ouano was absent.

 Days after the approval, at least 15 Capitol officials, including Davide, Vice Governor Agnes Magpale, eight Board Members who voted to award the project and BAC officials, three suppliers, and an anti-graft crusader were sued over the “sham bidding”  before the Office of the Ombudsman-Visayas by an anonymous complainant.

 It was earlier reported that Capitol allegedly rigged the bidding process to favor a contractor, which submitted the highest bid. The project was also marred with accusations of overpricing.

 The joint venture of RDAK Transport Equipment, Inc. and Nelson Lee Construction submitted the Lowest Calculated and Responsive Bid of P235 million followed by Civic Merchandising of P237 million. But ConEquip Philippines was declared winning bidder with the amount of P250 million despite having been disqualified in pre-qualification stage.

RDAK and Civic were post-disqualified allegedly because they did not meet the specification requirements. Civic was disqualified for its failure to comply with the specifications, as the company reportedly only offered 74 horsepower instead of the minimum 100hp.

The Provincial Board found “discrepancies” in the bidding and the “error” committed by the Bids and Awards Committee in power conversion. (FREEMAN)