The city will be preparing the comprehensive master development plan of the Asin hot spring complex in preparation for the expiration of the three-year contract that had been granted by the local government to a private operator.
City Budget Officer lawyer Leticia O. Clemente stated that the local government will have to decide if it will takeover the operation of the Asin hot spring complex after the lapse of the 3-year contract or it will subject the same through the Public-Private Partnership (PPP) to entice possible investors to operate the city-owned facility.
She disclosed that after the local government was able to possess the property, it offered the same for a short-term lease with a local company where the same is expected to expire by this year.
From the mere P5,000 lease rentals being paid by the previous controversial operator of the Asin hot spring complex, the city budget officer claimed that under the short-term contract with a local company, the lease rentals had been increased to P30,000 with an annual escalation until the expiration of the contract.
Earlier, the local government was able to fence off the city-owned property and eventually evicted the previous controversial operator of the Asin hot spring complex that paved the way for it to bid out the same for a short-term lease with a private company which had been operating the same since 2019.
The city budget officer underscored that the local government has to maximize available opportunities to entice investors to partner with the city for various revenue-generating projects for the city to be able to generate substantial income that will take the place of the projected loss in its national tax allocation (NATA) in the next 2 years, particularly by 2023 and 2024.
According to her, local governments were already informed by the budget department that there will be a significant reduction on their respective NATA in the next 2 years because of the reported reduction on the revenue that was generated by the government during the Coronavirus Disease 2019 (COVID-19) pandemic.
Clemente explained that the local government will be embarking on an 18-point investment plan to serve as the city’s blueprint in moving forward to the new normal after the COVID-19 pandemic that heavily impacted the global economy over the past 2 years.
She asserted that the local government must already be aggressive in enticing investors to establish their desired businesses in the city that will help generate jobs for the people and provide additional sources of revenue for the city aside from spurring the local economy.
Baguio is the center of trade and commerce in the Cordillera apart from being the educational center of the north, thus, the city serves as the convergence area of people from different parts of the country wanting to seek greener pasture for them to be able to uplift the living condition of their families. By Dexter A. See
