If ever, Navy wants lease payments in kind

BY VICTOR REYES

Malaya, Friday, August 13, 2010

THE Philippine Navy prefers equipment, instead of cash, as
payment for the planned long-term lease of its headquarters
in Manila and the Bonafacio Naval Station in Fort Bonifacio.

"The proposal of the Navy is goods, items already, and not
money…It should be Navy assets because under the Philippine
laws, it’s hard to procure," Armed Forces chief Lt. Gen.
Ricardo David told reporters in Camp Aguinaldo Wednesday
night.

David said accepting equipment from the firms willing to rent
the Navy properties will also spare officials of complications
of procurement like cases that may be filed by losing bidders.

David said there are instances when a losing bidder would
claim corruption, file a case before the courts, and
subsequently get restraining orders, delaying the acquisition
of needed equipment.

Navy spokesman Lt. Col. Edgard Arevalo said they prefer to be
paid "in kind because we will be avoiding long processes like
the bidding process."

Nevertheless, Arevalo said there is still nothing definite on
the lease of the Navy properties, adding discussions are ongoing.

He said the Navy is just part of a AFP technical working group
discussing the possible lease.

Navy chief Rear Adm. Danilo Cortez said at least three firms
have shown interest in renting Navy properties but would not
give details.

Cortez would not say how much they expect to be generated from
the lease.

President Aquino, in his state of the nation address last month,
said the government could get about $100 million from the planned
lease.