By Genalyn Kabiling
The government has moved anew the groundbreaking of the development of war-ravaged Marawi City from August to September amid plans to award the contract through-joint venture agreement and negotiated procurement.
Housing and Urban Development Coordinating Council (HUDCC) chair Eduardo del Rosario said they expect to complete the negotiations with Power Construction Corporation of China or PowerChina for the P16.8-billion development plan by next week.
“It will be on Sept 19, the groundbreaking, but it will not affect our target deadline of completing the most affected area rehabilitation by December of 2021,” Del Rosario, head of Task Bangon Marawi, said during a Palace press briefing.
“We are doing this to ensure that we will get the right developer and the right specifications will be met with the right standards that we would like to have to ensure that the MAA (most affected area) rehabilitation will be in accordance with the standard that we have set,” he added.
So far, Del Rosario said the negotiation with the Chinese company was moving “smoothly.”
“As of now, it’s about P16.8 billion. But the nitty-gritty of the negotiation on the details, it will be undertaken starting today and we hope to complete it by next week,” he said.
Del Rosario also revealed the government was considering pursuing development projects in Marawi through two modes, namely joint-venture agreement and negotiated procurement.
He said eight profit-generating project components such as the construction of a hospital and a convention center would be pursued through joint-venture agreement with the potential developer. These projects will still go through Swiss challenge, he added.
Negotiated procurement, on the other hand, would be applied for 14 nonprofit ventures such as roads, schools and barangay centers.
“In the joint-venture agreement, it is presumed that you have a project that will be income-generating. So that is the main reason why we are having a joint-venture agreement, that after the completion of a project it will become a profitable venture, and the government and the proponent will share in the profit,” he said.
“In other projects that we will not require (joint-venture agreement), it will be a negotiated procurement,” he said.
Asked if the negotiated procurement will affect the timeline of the project completion, Del Rosario said: “I think it will be faster, because it will not be subjected to Swiss challenge anymore.”
Del Rosario personally preferred joint-venture agreement with the Marawi developer but has been advised against pursuing such method for project components that do not generate profits. He said the task force might be charged in court for such technicality.