Muntinlupa Contractor Seeks Suspension of Mayor San Pedro and City Council Over Scrapped P280-M Skyway Project

Strategic Insights -

Muntinlupa-based private construction firm N.C. Tavu & Associates Corp. is seeking the suspension of Mayor Aldrin San Pedro and members of the city council for allegedly violating the Build-Operate-Transfer (BOT) contract approved in 2006 by the city government. The company's legal counsel, Corp. Doroteo Aguila, stated that they will be filing criminal and administrative charges against the city officials before the Office of the Ombudsman and the Department of the Interior and Local Government (DILG) within the month. The contractor claims that Mayor San Pedro and the city council acted with grave abuse of authority when they refused to honor the perfected BOT contract, ignoring demands for a Notice of Effectivity to proceed with the construction of the Elevated Multi-Link Pedestrian Walkway at the Alabang Viaduct.

Key Takeaways:

  • The contractor, N.C. Tavu & Associates Corp., claims that Mayor Aldrin San Pedro and the Muntinlupa city council violated the Build-Operate-Transfer (BOT) contract approved in 2006, which was signed with then-mayor Jaime Fresnedi and company president Neil Tavu on December 5, 2006.
  • The contractor is seeking the suspension of Mayor San Pedro and the city council members over their alleged "unconstitutional revocation" of the BOT contract, which they claim was a valid and perfected contract between the city government and the private company.
  • The Elevated Multi-Link Pedestrian Walkway at the Alabang Viaduct, also known as the "Skyway" project, was proposed by N.C. Tavu to then-Mayor Jaime Fresnedi on November 8, 2005, and a 24-year BOT contract was entered into between the city government and the company in December 2006.
  • The contractor claims that Mayor San Pedro, who won the mayoral elections in 2007, ordered the city council to junk the contract and look for other qualified bidders, citing alleged deficiencies in the company's financial capabilities.
  • The city government claims that they have no right to unilaterally revoke, rescind, or terminate the BOT contract without valid reason, with company president Neil Tavu stating that "the BOT agreement is a valid, existing, and perfected contract between petitioner and the city of Muntinlupa."
  • The case highlights the potential risks of infrastructure projects being delayed or abandoned due to changes in local politics, with company president Neil Tavu stating that "this case illustrates, painfully, how a changing of the guards in local politics can easily undermine the implementation of duly approved local infrastructure projects."

Statistics:

  • The project involves the construction of an Elevated Multi-Link Pedestrian Walkway at the Alabang Viaduct, with a total cost of P280 million.
  • The BOT contract was signed between the city government and N.C. Tavu & Associates Corp. on December 5, 2006, with a concession period of 24 years.
  • The contractor claims that the city government is expected to collect revenues from permit fees and taxes from business establishments that will occupy some 245 commercial stalls and 30 spaces for billboards and advertisements at the walkways.
  • The company president, Neil Tavu, stated that the city government's decision to revoke the contract will result in the loss of revenue for the city government, with estimates suggesting that the city will miss out on potentially P50-70 million in annual revenue.

Sources:

  • "Muntinlupa contractor seeks suspension of mayor over scrapped P280-M Skyway project." Philippine News Agency (PNA), March 16.
  • "N.C. Tavu files petition against Muntinlupa city officials over Skyway project." Business World, March 10.
  • "Contractor files charges vs Muntinlupa mayor, city council over 'Skyway' project." Philippine Star, March 14.
  • "Muntinlupa contractor, city officials in P280-M suit." Manila Standard, March 12.