As judgment day nears
NEDA on P350M Convention Center deal: 'Review, re-examine plan'
The National Economic and Development Authority (NEDA) here in an official stand has now recommended for the review and re-examination of the P350 million Capitol Convention Center.
Submitted by NEDA Region 6 Officer-in-Charge Arturo Valera, the NEDA report is now with Board Member Arthur Defensor Jr. (Third District), chair of the Sanggunian Panlalawigan (SP) Committee of the Whole.
This, as the SP body concludes its public hearing with the next days set for final deliberation of the Committee. Defensor Jr. in an earlier interview told The News Today (TNT) that no more additional hearing days are needed with inputs gathered thus far already substantial.
NEDA based its recommendations on the Feasibility Study prepared by Capitol financial advisor, David Buenavacz.
"The project study in its present form focuses on the projected debt service capacity of the Provincial Government to pay for the loan coming from all income sources including the expected revenue streams from the project itself," the NEDA in its report to the SP began. "However a P350 M loan for the project needs a detailed look in all aspects of the feasibility study, i.e. Marketing, Technical, Financial, Environment, Social Acceptability, Organization and Management capacity of the project"
In detail, NEDA suggested that the Buenavacz study should include answers to questions like "How was the project identified? Where the stakeholders consulted? What development concern of the province does the project aim to address? Is the project part of the province's development plan? What development potential of the province needs to be enhanced? Does the financial standing of the province warrant another loan? What perceived benefits does the project contribute to the province and the Panay Island?"
To recall, a "poor rating" was given to the Buenavacz study with said Capitol advisor standing to get over P10million in fee should the plan get the final go.
NEDA was also very specific with its recommendation for a thorough "Marketing Aspect" study set at determining the extent to which the project is needed or demanded. Further still, it is also asked that a design for appropriate marketing plans and strategies be adopted for the project's outputs.
"If demand for the project can not be established, do not proceed to the next aspect.It is better to look for another project," NEDA added.
In summing up its recommendations, NEDA wrote, "there is a need for a more detailed feasibility study of the project in all its aspects. The items of assumed rental rates and revenue sources including the assumed capacity rate of 85% have to be reviewed/re-examined. As a basic strategy in evaluating development projects, the Sangguniang Panlalawigan of Iloilo should identify alternative cost-effective projects."
If NEDA is to be heeded, the "alternative cost-effective project" can be the restoration of the old provincial Capitol with historic features retained and furnish the inside with state of the art equipment and facilities