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Salas optimistic on resolving project delay
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Posted on Apr 14 1999
Commonwealth Ports Authority executive director Carlos H. Salas said he is optimistic that the meeting today with Commonwealth Utilities Corp. will finally result in the resumption of the $4 million sewer line project.
“I believe that CPA and CUC will be able to work out something as the public’s welfare is at stake here,” said Salas.
Gov. Pedro P. Tenorio has scheduled a meeting for the two feuding agencies to meet and end the bickering in connection with the issue on who should foot the $1.9 million additional fee which the contractor of the project is seeking before resuming work.
Meetings between CUC and CPA have failed to resolve the issue as both parties differ on the interpretation of the Memorandum of Agreement which was earlier signed in connection with the sewer line project.
Salas maintained that the cost-sharing agreement with CUC also applies to payment of the contractor’s claim.
According to the MOA, CUC shall shoulder 70.6 percent of the project cost amounting to $3.5 million while the rest will be taken cared of by the ports authority.
But CUC Executive Director Timothy P. Villagomez believe that the ports authority alone should cover the additional cost because the government-owned utility cannot assume for “CPA’s mammoth mistakes and breach of public trust.”
The chief executive, apparently annoyed by the failure of the two agencies to settle the problem, said he will help in finding additional funding for the project.
Some 1,000 households are expected to benefit from the project which was postponed in May due to the financial problems besetting the ports authority.
