and effectiveness in the government operations. The responsibility for adhering
to this policy rests directly with the head of the government agency concerned.
9.2 In line with this, Section 296 of RA No. 7160, LGUs provides that the LGUs
may avail of credit facilities to finance local infrastructure projects, provided
that these projects are aligned with the approved local development plan and
public investment program.
9.3 Moreover, Section 17.6 of the Revised IRR of RA No. 9184 specifies that no
bidding and awarding of contracts for infrastructure projects shall be conducted
unless detailed engineering investigations and related activities have been
sufficiently carried out. These activities must be duly approved in accordance
with the standards and specifications prescribed by the Head of the Procuring
Entity or his authorized representative. Furthermore, Annex “A" of the IRR
requires that detailed engineering shall proceed only on the basis of feasibility
or preliminary engineering studies, which establish the technical viability of the
project.
9.4 Additionally, Section 2.1 of the Government Procurement Policy Board (GPPB)
Circular No. 06-2019, dated July 17, 2019, mandates that procuring entities
must complete all appropriate preparatory activities prior to the approval of the
indicative Annual Procurement Plan. These activities include, but are not
limited to, cost-benefit analysis, feasibility studies, market research, detailed
engineering designs, regulatory clearances, and right-of-way acquisitions for
civil works projects.
9.5 Therefore, it is imperative for management to establish project justification and
ensure that, before implementing any project or program, it satisfies the
following conditions: [1] maximum impact to the community, [2] feasibility, [3]
sustainability, [4] social acceptability, [5] functionality, [6] cost-effectiveness,
and [7] implementation capability by the local administration. If proceeds will
be indiscriminately utilized for non-productive endeavors, credit financing
options may result in further hardships on the part of the LGU concerned.
9.6 On December 19, 2023, the Sangguniang Panlalawigan, under Resolution Nos.
1272 and 1273, approved Addenda Nos. 1 and 2 to the Annual Investment
Program for Calendar Year 2024. These addenda included adjustments to the
allocation and nomenclature of identified priority projects, as follows:
Project Appropriation
1. Construction/Improvement of Bayawan District Hospital ₱ 100,000,000.00
2. Construction/Improvement of Bais District Hospital 100,000,000.00
3. Construction/Improvement of Gov. William “Billy” 100,000,000.00
Villegas Memorial Hospital
4. Installation of Solar Streetlights to 25 LGUs in Negros 750,000,000.00
Oriental
5. Construction of Negros Oriental Medical City 3,300,000,000.00
6. Construction of Negros Oriental Government Center 1,460,000,000.00
7. Improvement of Perdices Coliseum 40,000,000.00
Total ₱5,850,000,000.00
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