BAGUIO CITY—Mayor Mauricio Domogan said the local government will not obtain loans from financial lending institutions to fund priority development projects since he prefers the government’s Public-Private Partnership (PPP) mode of project implementation.
Domogan explained that since he became mayor more than two decades ago, he avoided borrowing funds for the city’s priority projects because he did not want future city officials to pay his administration’s debts.
“We have to maximize the benefits of the government’s PPP program for our people,” he stressed.
The local government’s plan to put up a mixed-use structure within the old city auditorium will be a PPP in which a two-story parking facility and commercial establishments in the upper portion will be the income-generating component.
According to Domogan, he has agreed with the members of the technical working group in charge of preparing the terms of reference for the city’s PPP proposal to incorporate several features of the project prior to submission to the local legislative body and subsequent implementation through public bidding.
Earlier, the site of the old city auditorium was identified as a commercial area that could accommodate the operation of a pay-parking facility, business establishments and other projects aimed that will augment the income generated by the 34-hectare Burnham Park.
Domogan revealed that in order, the local government spends at least P40 million annually to operate and manage the park but it only earns P12 million to P15 million yearly.
Thus, the city is heavily subsidizing the operation of the park even if it is titled in the name of the national government.
It will be recalled that the national government turned over to the local government the administration, operation and management of Burnham Park but the title of the property remains with the Tourism Infrastructure and Enterprise Zone Authority, thus, any development that will be introduced must be approved by the Authority prior to implementation.