Escalante: Evaluating based on cash flow is a ‘narrow perspective’
By Dominique Gabriel G. Bañaga

In response to Negros Occidental provincial administrator, Atty. Rayfrando Diaz, earlier revealing the provincial government is losing millions due to delays with major infrastructure projects, Cadiz City Mayor Salvador Escalante, Jr. came to the defense of the administration former Governor Alfredo Marañon, Jr. and called the projects started during his tenure “long term investments that you don’t expect to recoup in several short years.”
“Looking into the whole project in terms of cash flow is a narrow perspective,” the former provincial board member added.
Among the projects the provincial administrator cited included the delayed completion of Negros Food Terminal along the North Capitol road and the multi-purpose building that is being built next to the National Bureau of Investigation office along Aguinaldo Street in Bacolod City, the Negros First Residences, and the Mambukal Convention Center Hotel at the Mambukal Mountain Resort in Murcia.
On a separate occasion, Diaz discussed the joint venture agreement between the provincial government and Negros First CyberCentre management, which was drawn up during the Marañon administration, was also under review after it was found the facility was not self-sustaining.
He pointed out, income from the CyberCentre went from P1.7 million in 2016 to P9 million in 2018. This year, the facility is expected to earn P14 million. However, the provincial government incurred development costs of P600 million through the loan.
In 2016, after announcing a consortium between the Sosa JB Property Management Corporation, CPRM Consultants, Inc., and Compact Builders, Inc. would take over CyberCentre operations, development, and management, Marañon affirmed, earnings from the facility were projected to be sufficient to pay back the loan borrowed for construction.
However, Diaz said the provincial government has only been provided a percentage of the lease payments and stated, “[It] is not enough to pay for the loan.”/DGB, WDJ

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